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IC 28-8-4
Chapter 4. Money Transmitters
IC 28-8-4-1
Applicability
Sec. 1. This chapter does not apply to the following:
(1) The United States or an instrumentality of the United States.
(2) The state, a political subdivision of the state, or an
instrumentality of the state or of a political subdivision of the
state.
(3) A bank, a bank holding company, an industrial loan and
investment company, a credit union, a savings association, a
savings bank, a mutual bank, or a mutual savings bank
organized under the laws of any state or the United States.
(4) A stored value card, credit card, or debit card issued by a
state or federally chartered financial institution.
As added by P.L.42-1993, SEC.85. Amended by P.L.172-1997,
SEC.23; P.L.79-1998, SEC.81; P.L.258-2003, SEC.16; P.L.10-2006,
SEC.51 and P.L.57-2006, SEC.51; P.L.89-2011, SEC.55;
P.L.216-2013, SEC.39.
IC 28-8-4-2
Applicant
Sec. 2. As used in this chapter, "applicant" means a person filing
an application for a license under this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-3
Authorized delegation
Sec. 3. As used in this chapter, "authorized delegate" means an
entity designated by a licensee to:
(1) sell or issue payment instruments; or
(2) engage in the business of transmitting money on behalf of
the licensee.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-3.5
Closed system stored value card
Sec. 3.5. As used in this chapter, "closed system stored value
card" refers to a stored value card the use of which is limited to one
(1) or more specified merchants or locations.
As added by P.L.10-2006, SEC.52 and P.L.57-2006, SEC.52.
IC 28-8-4-4
Control
Sec. 4. As used in this chapter, "control" means:
(1) ownership; or
(2) the power to vote at least twenty-five percent (25%);
of the outstanding voting securities of a licensee or controlling
person.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-5
Controlling person
Sec. 5. As used in this chapter, "controlling person" means a
person in control of a licensee.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-6
Department
Sec. 6. As used in this chapter, "department" means the members
of the department of financial institutions.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-7
Director
Sec. 7. As used in this chapter, "director" has the meaning set
forth in IC 28-11-2-1.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-8
Executive officer
Sec. 8. As used in this chapter, "executive officer" means a person
who is or performs the duties of the licensee's:
(1) president;
(2) chief executive officer;
(3) treasurer; or
(4) chief financial officer.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-8.5
Individual
Sec. 8.5. As used in this chapter, "individual" means a natural
person.
As added by P.L.216-2013, SEC.40.
IC 28-8-4-9
Key shareholder
Sec. 9. As used in this chapter, "key shareholder" means:
(1) a person who owns; or
(2) a group of persons acting as a unit that own;
at least twenty-five percent (25%) of a class of an applicant's stock.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-10 Version a
Licensed activities
Note: This version of section effective until 1-1-2014. See also
following version of this section, effective 1-1-2014.
Sec. 10. As used in this chapter, "licensed activities" means the
activities:
(1) that a licensee engages in within Indiana; and
(2) for which a licensee has obtained a license under this
chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-10 Version b
Licensed activities
Note: This version of section effective 1-1-2014. See also
preceding version of this section, effective until 1-1-2014.
Sec. 10. As used in this chapter, "licensed activities" means
money transmission activities:
(1) that a licensee engages in:
(A) from a place of business in Indiana; or
(B) with a consumer who is a resident of Indiana and who
enters into the transaction in Indiana; and
(2) for which a licensee has obtained a license under this
chapter.
As added by P.L.42-1993, SEC.85. Amended by P.L.216-2013,
SEC.41.
IC 28-8-4-11
Licensee
Sec. 11. As used in this chapter, "licensee" means a person
licensed under this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-12
Material litigation
Sec. 12. As used in this chapter, "material litigation" means
litigation that under generally accepted accounting principles is
considered significant to the financial health of a business and would
be required to be referenced in a corporation's or business's annual
audited financial statements, report to shareholders, or a similar
document.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-13 Version a
Money transmission
Note: This version of section effective until 1-1-2014. See also
following version of this section, effective 1-1-2014.
Sec. 13. As used in this chapter, "money transmission" means:
(1) the sale or issuance of payment instruments primarily for
personal, family, or household purposes; or
(2) engaging in the business of:
(A) receiving money for transmission from; or
(B) transmitting money to;
any location and by any means, including a payment instrument,
wire, facsimile, or electronic transfer, primarily for personal,
family, or household purposes.
As added by P.L.42-1993, SEC.85. Amended by P.L.89-2011,
SEC.56.
IC 28-8-4-13 Version b
Money transmission
Note: This version of section effective 1-1-2014. See also
preceding version of this section, effective until 1-1-2014.
Sec. 13. (a) As used in this chapter, "money transmission" means
an activity that:
(1) involves:
(A) the sale or issuance of payment instruments primarily for
personal, family, or household purposes; or
(B) engaging in the business of:
(i) receiving money for transmission from; or
(ii) transmitting money to;
any location and by any means, including a payment
instrument, wire, facsimile, or electronic transfer, primarily
for personal, family, or household purposes; and
(2) is performed:
(A) from an office or place of business, wherever located; or
(B) over the Internet or by any other means of transmission.
(b) The term includes any activity described in subsection (a) that
is performed by an authorized delegate, wherever located.
As added by P.L.42-1993, SEC.85. Amended by P.L.89-2011,
SEC.56; P.L.216-2013, SEC.42.
IC 28-8-4-13.8
Organization
Sec. 13.8. As used in this chapter, "organization" means a
corporation, a government or governmental subdivision, an agency,
a trust, an estate, a partnership, a limited liability company, a
cooperative, an association, a joint venture, an unincorporated
organization, or any other entity, however organized.
As added by P.L.216-2013, SEC.43.
IC 28-8-4-14
Outstanding payment instrument
Sec. 14. As used in this chapter, "outstanding payment
instrument" means a payment instrument issued by the licensee that:
(1) has been sold in the United States;
(2) has been sold:
(A) by the licensee; or
(B) by an authorized delegate of the licensee and has been
reported to the licensee as having been sold; and
(3) has not been paid by or on behalf of the licensee.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-15
Payment instrument
Sec. 15. (a) As used in this chapter, "payment instrument" means:
(1) a check;
(2) a draft;
(3) a money order;
(4) a traveler's check;
(5) a stored value card, other than a closed system stored value
card; or
(6) an instrument or written order for the transmission or
payment of money;
sold or issued to one (1) or more persons, whether such instrument
is negotiable.
(b) As used in this chapter, "payment instrument" does not
include:
(1) a credit card voucher;
(2) a letter of credit;
(3) an instrument that is redeemable by the issuer in goods or
services; or
(4) a closed system stored value card.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.53
and P.L.57-2006, SEC.53.
IC 28-8-4-16
Permissible investments
Sec. 16. As used in this chapter, "permissible investments" means:
(1) cash;
(2) certificates of deposit or other debt obligations of a financial
institution, either domestic or foreign;
(3) bills of exchange or time drafts drawn on and accepted by
a commercial bank, otherwise known as bankers' acceptances,
that are eligible for purchase by member banks of the Federal
Reserve system;
(4) an investment bearing a rating of one (1) of the three (3)
highest grades as defined by a nationally recognized
organization that rates such securities;
(5) investment securities that are obligations of the United
States, its agencies or instrumentalities, or obligations that are
guaranteed fully as to principal and interest by the United
States, or any obligations of any state, municipality, or any
political subdivision thereof;
(6) shares in a money market mutual fund, interest-bearing bills
or notes or bonds, debentures or stock traded on any national
securities exchange or on a national over-the-counter market, or
mutual funds primarily composed of such securities;
(7) a demand borrowing agreement or agreements made to a
corporation or a subsidiary of a corporation whose capital stock
is listed on a national exchange;
(8) receivables that are due to a licensee from the licensee's
authorized delegates under a contract described in section 49 of
this chapter, which are not past due or doubtful of collection; or
(9) an investment that is approved by the director.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-17
Person
Sec. 17. As used in this chapter, "person" means an individual or
an organization.
As added by P.L.42-1993, SEC.85. Amended by P.L.216-2013,
SEC.44.
IC 28-8-4-18 Version a
Security device
Note: This version of section effective until 7-1-2014. See also
following repeal of this section, effective 7-1-2014.
Sec. 18. As used in this chapter, "security device" includes a
surety bond, an irrevocable letter of credit, or other similar security
device.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-18 Version b
Repealed
(Repealed by P.L.216-2013, SEC.45.)
Note: This repeal of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
IC 28-8-4-19
The state
Sec. 19. As used in this chapter, "the state" means Indiana.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-19.5
Stored value card
Sec. 19.5. As used in this chapter, "stored value card" means a
card or device that:
(1) may be used by a holder to:
(A) perform financial transactions; or
(B) obtain, purchase, or receive money, goods, or services;
in an amount or having a value that does not exceed the dollar
value of the card; and
(2) has a magnetic stripe or computer chip that enables dollar
values to be electronically added to or deducted from the dollar
value of the card.
As added by P.L.10-2006, SEC.54 and P.L.57-2006, SEC.54.
IC 28-8-4-20 Version a
License required; application; felonies; evidence of compliance;
criminal background checks; tax warrant list
Note: This version of section effective until 1-1-2014. See also
following version of this section, effective 1-1-2014.
Sec. 20. (a) A person may not engage in the business of money
transmission without a license required by this chapter.
(b) An application for a license must be submitted on a form
prescribed by the department and must include the information
required by the department.
(c) An application submitted under this section must indicate
whether any individuals described in section 35(b)(2) or 35(b)(3) of
this chapter:
(1) are, at the time of the application, under indictment for a
felony under the laws of Indiana or any other jurisdiction; or
(2) have been convicted of or pleaded guilty or nolo contendere
to a felony under the laws of Indiana or any other jurisdiction.
(d) The director may request evidence of compliance with this
section at:
(1) the time of application;
(2) the time of renewal of a license; or
(3) any other time considered necessary by the director.
(e) For purposes of subsection (d), evidence of compliance may
include:
(1) criminal background checks, including a national criminal
history background check (as defined in IC 10-13-3-12) by the
Federal Bureau of Investigation for an individual described in
section 35(b)(2) or 35(b)(3) of this chapter;
(2) credit histories; and
(3) other background checks considered necessary by the
director.
If the director requests a national criminal history background check
under subdivision (1) for an individual described in that subdivision,
the director shall require the individual to submit fingerprints to the
department or to the state police department, as appropriate, at the
time evidence of compliance is requested under subsection (d). The
individual to whom the request is made shall pay any fees or costs
associated with the fingerprints and the national criminal history
background check. The national criminal history background check
may be used by the director to determine the individual's compliance
with this section. The director or the department may not release the
results of the national criminal history background check to any
private entity.
(f) If the department of state revenue notifies the department that
a person is on the most recent tax warrant list, the department shall
not issue or renew the person's license until:
(1) the person provides to the department a statement from the
department of state revenue that the person's tax warrant has
been satisfied; or
(2) the department receives a notice from the commissioner of
the department of state revenue under IC 6-8.1-8-2(k).
As added by P.L.42-1993, SEC.85. Amended by P.L.63-2001, SEC.20
and P.L.134-2001, SEC.22; P.L.10-2006, SEC.55 and P.L.57-2006,
SEC.55; P.L.90-2008, SEC.56; P.L.35-2010, SEC.180;
P.L.172-2011, SEC.134.
IC 28-8-4-20 Version b
License required; application; felonies; evidence of compliance;
criminal background checks; tax warrant list
Note: This version of section effective 1-1-2014. See also
preceding version of this section, effective until 1-1-2014.
Sec. 20. (a) A person may not engage in the business of money
transmission:
(1) from a place of business in Indiana; or
(2) with a consumer who is a resident of Indiana and who enters
into the transaction in Indiana;
without a license required by this chapter.
(b) An application for a license must be:
(1) submitted on a form prescribed by the director and must
include the information required by the director; and
(2) accompanied by a nonrefundable application fee as fixed by
the department under IC 28-11-3-5.
(c) An application submitted under this section must indicate
whether any individuals described in section 35(b)(2) or 35(b)(3) of
this chapter have been convicted of a felony under the laws of
Indiana or any other jurisdiction.
(d) The director may request evidence of compliance with this
section at:
(1) the time of application;
(2) the time of renewal of a license; or
(3) any other time considered necessary by the director.
(e) For purposes of subsection (d), evidence of compliance may
include:
(1) criminal background checks, including a national criminal
history background check (as defined in IC 10-13-3-12) by the
Federal Bureau of Investigation for an individual described in
section 35(b)(2) or 35(b)(3) of this chapter;
(2) credit histories; and
(3) other background checks considered necessary by the
director.
If the director requests a national criminal history background check
under subdivision (1) for an individual described in that subdivision,
the director shall require the individual to submit fingerprints to the
department or to the state police department, as appropriate, at the
time evidence of compliance is requested under subsection (d). The
individual to whom the request is made shall pay any fees or costs
associated with the fingerprints and the national criminal history
background check. The national criminal history background check
may be used by the director to determine the individual's compliance
with this section. The director or the department may not release the
results of the national criminal history background check to any
private entity.
(f) If the department of state revenue notifies the department that
a person is on the most recent tax warrant list, the department shall
not issue or renew the person's license until:
(1) the person provides to the department a statement from the
department of state revenue that the person's tax warrant has
been satisfied; or
(2) the department receives a notice from the commissioner of
the department of state revenue under IC 6-8.1-8-2(k).
As added by P.L.42-1993, SEC.85. Amended by P.L.63-2001, SEC.20
and P.L.134-2001, SEC.22; P.L.10-2006, SEC.55 and P.L.57-2006,
SEC.55; P.L.90-2008, SEC.56; P.L.35-2010, SEC.180;
P.L.172-2011, SEC.134; P.L.216-2013, SEC.46.
IC 28-8-4-20.5
Use of NMLSR in department's licensing system; reporting of
information to NMLSR; confidentiality; director's authority to
enter agreements; waiver of privilege; processing fee; electronic
records
Effective 11-1-2013.
Sec. 20.5. (a) As used in this section, "Nationwide Mortgage
Licensing System and Registry" or "NMLSR" means a mortgage
licensing system developed and maintained by the Conference of
State Bank Supervisors and the American Association of Residential
Mortgage Regulators for the licensing and registration of creditors,
mortgage loan originators, and other financial services entities and
their employees and agents.
(b) Subject to subsection (g), the director may designate the
NMLSR to serve as the sole entity responsible for:
(1) processing applications and renewals for licenses under this
chapter;
(2) issuing unique identifiers for licensees and entities exempt
from licensing under this chapter; and
(3) performing other services that the director determines are
necessary for the orderly administration of the department's
licensing system under this chapter.
(c) Subject to the confidentiality provisions contained in
IC 5-14-3, this section, and section 47 of this chapter, the director
shall regularly report significant or recurring violations of this
chapter to the NMLSR.
(d) Subject to the confidentiality provisions contained in
IC 5-14-3, this section, and section 47 of this chapter, the director
may report complaints received regarding licensees under this
chapter to the NMLSR.
(e) The director may report publicly adjudicated licensure actions
against a licensee to the NMLSR.
(f) The director shall establish a process by which licensees may
challenge information reported to the NMLSR by the department.
(g) The director's authority to designate the NMLSR under
subsection (b) is subject to the following:
(1) Information stored in the NMLSR is subject to the
confidentiality provisions of IC 5-14-3 and section 47 of this
chapter. A person may not:
(A) obtain information from the NMLSR, unless the person
is authorized to do so by statute;
(B) initiate any civil action based on information obtained
from the NMLSR if the information is not otherwise
available to the person under any other state law; or
(C) initiate any civil action based on information obtained
from the NMLSR if the person could not have initiated the
action based on information otherwise available to the
person under any other state law.
(2) Documents, materials, and other forms of information in the
control or possession of the NMLSR that are confidential under
section 47 of this chapter and that are:
(A) furnished by the director, the director's designee, or a
licensee; or
(B) otherwise obtained by the NMLSR;
are confidential and privileged by law and are not subject to
inspection under IC 5-14-3, subject to subpoena, subject to
discovery, or admissible in evidence in any civil action.
However, the director may use the documents, materials, or
other information available to the director in furtherance of any
action brought in connection with the director's duties under
this chapter.
(3) Disclosure of documents, materials, and information:
(A) to the director; or
(B) by the director;
under this subsection does not result in a waiver of any
applicable privilege or claim of confidentiality with respect to
the documents, materials, or information.
(4) Information provided to the NMLSR is subject to IC 4-1-11.
(5) This subsection does not limit or impair a person's right to:
(A) obtain information;
(B) use information as evidence in a civil action or
proceeding; or
(C) use information to initiate a civil action or proceeding;
if the information may be obtained from the director or the
director's designee under any law.
(6) The requirements under any federal law or IC 5-14-3
regarding the privacy or confidentiality of any information or
material provided to the NMLSR, and any privilege arising
under federal or state law, including the rules of any federal or
state court, with respect to the information or material, continue
to apply to the information or material after the information or
material has been disclosed to the NMLSR. The information
and material may be shared with all state and federal regulatory
officials with financial services industry oversight authority
without the loss of privilege or the loss of confidentiality
protections provided by federal law or IC 5-14-3.
(7) For purposes of this section, the director may enter
agreements or sharing arrangements with other governmental
agencies, the Conference of State Bank Supervisors, the Money
Transmitters Regulators Association, or other associations
representing governmental agencies, as established by rule or
order of the director.
(8) Information or material that is subject to a privilege or
confidentiality under subdivision (6) is not subject to:
(A) disclosure under any federal or state law governing the
disclosure to the public of information held by an officer or
an agency of the federal government or the respective state;
or
(B) subpoena, discovery, or admission into evidence in any
private civil action or administrative process, unless with
respect to any privilege held by the NMLSR with respect to
the information or material, the person to whom the
information or material pertains waives, in whole or in part,
in the discretion of the person, that privilege.
(9) Any provision of IC 5-14-3 that concerns the disclosure of:
(A) confidential supervisory information; or
(B) any information or material described in subdivision (6);
and that is inconsistent with subdivision (6) is superseded by
this section.
(10) This section does not apply with respect to information or
material that concerns the employment history of, and publicly
adjudicated disciplinary and enforcement actions against, a
person described in section 35(b)(2) or 35(b)(3) of this chapter
and that is included in the NMLSR for access by the public.
(11) The director may require a licensee required to submit
information to the NMLSR to pay a processing fee considered
reasonable by the director. In determining whether the NMLSR
processing fee is reasonable, the director shall:
(A) require review of; and
(B) make available;
the audited financial statements of the NMLSR.
(12) Notwithstanding any other provision of law, any:
(A) application, renewal, or other form or document that:
(i) relates to licenses issued under this chapter; and
(ii) is made or produced in an electronic format;
(B) document filed as an electronic record in a multistate
automated repository established and operated for the
licensing or registration of financial services entities and
their employees; or
(C) electronic record filed through the NMLSR;
is considered a valid original document when reproduced in
paper form by the department.
As added by P.L.216-2013, SEC.47.
IC 28-8-4-21 Version a
Form of license applications; security devices; fees
Note: This version of section effective until 7-1-2014. See also
following version of this section, effective 7-1-2014.
Sec. 21. (a) An application for a license under this chapter must
be:
(1) in writing;
(2) under oath; and
(3) in a form prescribed by the director.
(b) An application for a license must be accompanied by the
following:
(1) A security device as required by section 27 of this chapter
or a deposit as required by section 29 of this chapter. If
requested, the director may permit corporations that are directly
or indirectly commonly controlled to engage in activities under
this chapter pursuant to a single security device filed under
section 27 of this chapter or a single deposit filed under section
29 of this chapter.
(2) A nonrefundable license fee as provided in section 32 of this
chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-21 Version b
Form of license applications; surety bond; fee
Note: This version of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
Sec. 21. (a) An application for a license under this chapter must
be:
(1) in writing;
(2) under oath; and
(3) in a form prescribed by the director.
(b) An application for a license must be accompanied by the
following:
(1) A surety bond as required by section 27 of this chapter. If
requested, the director may permit corporations that are directly
or indirectly commonly controlled to engage in activities under
this chapter pursuant to a single surety bond filed under section
27 of this chapter.
(2) A nonrefundable license fee as fixed by the department
under IC 28-11-3-5.
As added by P.L.42-1993, SEC.85. Amended by P.L.216-2013,
SEC.48.
IC 28-8-4-22
Repealed
(Repealed by P.L.90-2008, SEC.80.)
IC 28-8-4-23
Repealed
(Repealed by P.L.90-2008, SEC.80.)
IC 28-8-4-24
Contents of license applications
Sec. 24. An application for licensure under this chapter must
contain the following:
(1) The name of the applicant.
(2) The applicant's principal address.
(3) A fictitious or trade name, if any, used by the applicant in
the conduct of its business.
(4) The location of the applicant's business records.
(5) The history of the applicant's:
(A) material litigation; and
(B) criminal convictions for felonies involving fraud, deceit,
or misrepresentation under the laws of Indiana or any other
jurisdiction.
(6) A description of:
(A) the activities conducted by the applicant;
(B) the applicant's history of operations; and
(C) the business activities in which the applicant seeks to be
engaged in Indiana.
(7) A list identifying the applicant's proposed authorized
delegates in Indiana.
(8) A sample authorized delegate contract, if applicable.
(9) A sample form of payment instrument, if applicable.
(10) The location or locations at which the applicant and its
authorized delegates propose to conduct the licensed activities
in Indiana. If any business, other than the business of money
transmission under this chapter, will be conducted by the
applicant or another person at any location identified under this
subdivision, the applicant shall indicate for each location at
which another business will be conducted:
(A) the nature of the other business;
(B) the name under which the other business operates;
(C) the address of the principal office of the other business;
(D) the name and address of the business's resident agent in
Indiana; and
(E) any other information that the director may require.
However, the applicant is not required to submit the
information required by this subdivision if the location at which
the other business will be conducted is the place of business of
an authorized delegate that is not under common control with
the applicant.
(11) The name and address of the clearing bank or banks on
which the applicant's payment instruments will be drawn or
through which such payment instruments will be payable.
(12) Documents revealing that the applicant has a net worth of
at least six hundred thousand dollars ($600,000), calculated in
accordance with generally accepted accounting principles.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.56
and P.L.57-2006, SEC.56; P.L.213-2007, SEC.76; P.L.217-2007,
SEC.74; P.L.216-2013, SEC.49.
IC 28-8-4-25
Applicants not organized as sole proprietorship; contents of
applications
Sec. 25. In addition to the items listed in section 24 of this
chapter, if an applicant for licensure under this chapter is not
organized as a sole proprietorship, the applicant must provide the
following items and information relating to the applicant's
organizational structure:
(1) State of incorporation or organization.
(2) Date of incorporation or organization.
(3) A certificate from the state in which the applicant was
incorporated or organized stating that the entity is in good
standing, or an equivalent certification from the state in which
the applicant was incorporated or organized.
(4) A description of the organizational structure of the
applicant, including the following:
(A) The identity of the parent of the applicant.
(B) The identity of each subsidiary of the applicant.
(C) The names of the stock exchanges, if any, in which the
applicant, the parent, and the subsidiaries are publicly
traded.
(5) The:
(A) name;
(B) business address;
(C) residence address; and
(D) employment history;
for each individual described in section 35(b)(2) or 35(b)(3) of
this chapter.
(6) The:
(A) history of material litigation; and
(B) history of criminal convictions for felonies involving
fraud, deceit, or misrepresentation under the laws of Indiana
or any other jurisdiction;
for each individual described in section 35(b)(2) or 35(b)(3) of
this chapter.
(7) Except as provided in subdivision (8), copies of the
applicant's audited financial statements for the current year and,
if available, for the preceding two (2) years, including a:
(A) balance sheet;
(B) statement of income or loss;
(C) statement of changes in shareholder equity; and
(D) statement of changes in financial position.
A financial statement required to be submitted under this
subdivision must be prepared by an independent certified public
accountant authorized to do business in the United States in
accordance with AICPA Statements on Standards for
Accounting and Review Services (SSARS).
(8) If the applicant is a wholly owned subsidiary of:
(A) a corporation or other organization publicly traded in the
United States, financial statements for the current year or the
parent corporation's or parent organization's Form 10K
reports filed with the United States Securities and Exchange
Commission for the preceding three (3) years may be
submitted with the applicant's unaudited financial
statements; or
(B) a corporation or other organization publicly traded
outside the United States, similar documentation filed with
the parent corporation's or parent organization's non-United
States regulator may be submitted with the applicant's
unaudited financial statements.
(9) Copies of filings, if any, made by the applicant with the
United States Securities and Exchange Commission, or with a
similar regulator in a country other than the United States, not
more than one (1) year before the date of filing of the
application.
As added by P.L.42-1993, SEC.85. Amended by P.L.213-2007,
SEC.77; P.L.217-2007, SEC.75; P.L.3-2008, SEC.224; P.L.90-2008,
SEC.57; P.L.1-2009, SEC.150; P.L.89-2011, SEC.57; P.L.216-2013,
SEC.50.
IC 28-8-4-26
Repealed
(Repealed by P.L.90-2008, SEC.80.)
IC 28-8-4-27 Version a
Form and amount of security devices
Note: This version of section effective until 7-1-2014. See also
following version of this section, effective 7-1-2014.
Sec. 27. (a) Except as provided in section 29 of this chapter, an
application must be accompanied by a security device that secures
the faithful performance of the obligations of the licensee to receive,
handle, transmit, and pay money in connection with the:
(1) sale and issuance of payment instruments; or
(2) transmission of money.
(b) The security device required under subsection (a) must:
(1) be in an amount as provided under subsection (c);
(2) run to the state; and
(3) be in a form acceptable to the director.
(c) The security device must be in an amount calculated as
follows:
STEP ONE: Subtract one (1) from the number of locations
where the applicant proposes to engage in business under the
license.
STEP TWO: Multiply the difference determined under STEP
ONE by ten thousand dollars ($10,000).
STEP THREE: Add two hundred thousand dollars ($200,000)
to the product determined under STEP TWO.
STEP FOUR: Pay the amount that is the lesser of:
(1) the sum determined in STEP THREE; or
(2) three hundred thousand dollars ($300,000).
(d) If the security device filed is a bond, the aggregate liability of
the surety shall not exceed the principal sum of the bond.
As added by P.L.42-1993, SEC.85. Amended by P.L.73-2004,
SEC.38.
IC 28-8-4-27 Version b
Surety bond; requirements; amount; termination; liability; notices
Note: This version of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
Sec. 27. (a) An application for licensure under this chapter must
be accompanied by a surety bond in accordance with this section.
(b) The surety bond required under subsection (a) must:
(1) be in the amount of three hundred thousand dollars
($300,000);
(2) be in a form acceptable to the director;
(3) be in effect during the term of the license issued under this
chapter;
(4) remain in effect during the five (5) years after the licensee
ceases offering money transmission services in Indiana;
(5) be payable to the department for the benefit of:
(A) the state;
(B) individuals who reside in Indiana when they agree to
receive money transmission services from the licensee; and
(C) entities that do business in Indiana when they agree to
receive money transmission services from the licensee;
(6) be issued by a bonding, surety, or insurance company
authorized to do business in Indiana and rated at least "A-" by
at least one (1) nationally recognized investment rating service;
and
(7) have payment conditioned upon the licensee's or any of the
licensee's employees' or agents' noncompliance with or violation
of this chapter or other applicable federal or state laws or
regulations.
(c) The director may adopt rules or guidance documents with
respect to the requirements for a surety bond as necessary to
accomplish the purposes of this chapter.
(d) If the principal amount of a surety bond required under this
section is reduced by payment of a claim or judgment, the licensee
for whom the bond is issued shall immediately notify the director of
the reduction and, not later than thirty (30) days after notice by the
director, file a new or an additional surety bond in the amount
needed to restore the amount of the surety bond to three hundred
thousand dollars ($300,000).
(e) If for any reason a surety terminates a bond issued under this
section, the licensee shall immediately notify the department and file
a new surety bond in the amount of three hundred thousand dollars
($300,000).
(f) Cancellation of a surety bond issued under this section does
not affect any liability incurred or accrued during the period when
the surety bond was in effect.
(g) The director may obtain satisfaction from a surety bond issued
under this section if the director incurs expenses, issues a final order,
or recovers a final judgment under this chapter.
(h) Notices required under this section must be in writing and
delivered by certified mail, return receipt requested and postage
prepaid, or by overnight delivery using a nationally recognized
carrier.
As added by P.L.42-1993, SEC.85. Amended by P.L.73-2004,
SEC.38; P.L.216-2013, SEC.51.
IC 28-8-4-28 Version a
Cancellation of security devices
Note: This version of section effective until 7-1-2014. See also
following repeal of this section, effective 7-1-2014.
Sec. 28. (a) The security device provided for in section 27 of this
chapter shall remain in effect until cancellation.
(b) A security device may be canceled not more than thirty (30)
days after written notice is sent by first class mail to the director.
(c) Cancellation of a security device does not affect any liability
incurred or accrued during the period when the security device was
in effect.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-28 Version b
Repealed
(Repealed by P.L.216-2013, SEC.52.)
Note: This repeal of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
IC 28-8-4-29 Version a
Deposits instead of security devices
Note: This version of section effective until 7-1-2014. See also
following repeal of this section, effective 7-1-2014.
Sec. 29. (a) In lieu of a security device, the licensee may deposit
with the director, or with banks in the state as the licensee may
designate and the director may approve, one (1) or more of the
following:
(1) Cash.
(2) Interest-bearing stocks and bonds.
(3) Notes.
(4) Debentures.
(5) Other obligations:
(A) of the United States or any agency or instrumentality of
the United States;
(B) guaranteed by the United States;
(C) of the state, a city, a county, a town, a village, a school
district, or an instrumentality of the state; or
(D) guaranteed by the state.
(b) Each item deposited under subsection (a) must be calculated
based on the lesser of:
(1) the principal amount; or
(2) the market amount.
(c) The aggregate amount deposited under subsection (a) must be
not less than the amount required under section 27 of this chapter.
(d) The deposits made under subsection (a) shall be held to secure
the faithful performance of the obligations of the licensee to receive,
handle, transmit, and pay money in connection with the:
(1) sale and issuance of payment instruments; and
(2) transmission of money.
(e) An applicant that makes a deposit under subsection (a) is
entitled to receive all interest and dividends from the deposit.
(f) An applicant that makes a deposit under subsection (a) has the
right, with the approval of the director, to substitute other securities
for those deposited, and shall be required to do so on written order
of the director made for good cause shown.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-29 Version b
Repealed
(Repealed by P.L.216-2013, SEC.53.)
Note: This repeal of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
IC 28-8-4-30 Version a
Duration of security devices and deposits; reduction; elimination
Note: This version of section effective until 7-1-2014. See also
following repeal of this section, effective 7-1-2014.
Sec. 30. (a) Except as provided in subsection (b), a security device
filed under section 27 of this chapter and a deposit made under
section 29 of this chapter must remain in place:
(1) during the time a licensee engages in money transmission
operations in Indiana; and
(2) for five (5) years after the date a licensee ceases money
transmission operations in Indiana.
(b) Prior to the expiration of the five (5) years in subsection
(a)(2), the director may permit a licensee to:
(1) reduce a security device or a deposit to the amount of the
licensee's outstanding payment instruments that remain in
Indiana; or
(2) eliminate a security device or deposit, if the licensee has no
outstanding payment instruments in Indiana.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-30 Version b
Repealed
(Repealed by P.L.216-2013, SEC.54.)
Note: This repeal of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
IC 28-8-4-31
Repealed
(Repealed by P.L.216-2013, SEC.55.)
IC 28-8-4-32
Repealed
(Repealed by P.L.216-2013, SEC.56.)
IC 28-8-4-33 Version a
Conduct of business; insurance; permissible investments; good
standing
Note: This version of section effective until 7-1-2014. See also
following version of this section, effective 7-1-2014.
Sec. 33. (a) A license granted under this chapter permits a licensee
to conduct business:
(1) at one (1) or more locations directly or indirectly owned by
the licensee; or
(2) through one (1) or more authorized delegates.
(b) Each licensee shall maintain a policy of insurance issued by
an insurer authorized to do business in Indiana that insures the
applicant against loss by a criminal act or act of dishonesty. The
principal sum of the policy shall be equivalent to the amount of the
required security device required under section 27 of this chapter or
deposit required under section 29 of this chapter.
(c) Except as provided in subsection (d), a licensee must at all
times possess permissible investments with an aggregate market
value calculated in accordance with generally accepted accounting
principles of not less than the aggregate face amount of all
outstanding payment instruments issued or sold by the licensee or an
authorized delegate of the licensee in the United States.
(d) The director may waive the permissible investments
requirement in subsection (c) if the dollar volume of a licensee's
outstanding payment instruments does not exceed:
(1) the security device posted by the licensee under section 27
of this chapter; or
(2) the deposit made by the licensee under section 29 of this
chapter.
(e) A licensee that is a corporation must at all times be in good
standing with the secretary of state of the state in which the licensee
was incorporated.
As added by P.L.42-1993, SEC.85. Amended by P.L.73-2004,
SEC.39.
IC 28-8-4-33 Version b
Conduct of business; insurance; permissible investments; good
standing
Note: This version of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
Sec. 33. (a) A license granted under this chapter permits a licensee
to conduct business:
(1) at one (1) or more locations directly or indirectly owned by
the licensee; or
(2) through one (1) or more authorized delegates.
(b) Each licensee shall maintain a policy of insurance issued by
an insurer authorized to do business in Indiana that insures the
applicant against loss by a criminal act or act of dishonesty. The
principal sum of the policy shall be equivalent to the amount of the
surety bond required under section 27 of this chapter.
(c) A licensee must at all times possess permissible investments
with an aggregate market value calculated in accordance with
generally accepted accounting principles of not less than the
aggregate face amount of all outstanding payment instruments issued
or sold by the licensee or an authorized delegate of the licensee in the
United States.
(d) A licensee that is a corporation or a limited liability company
must at all times be in good standing with the secretary of state of the
state in which the licensee was incorporated.
As added by P.L.42-1993, SEC.85. Amended by P.L.73-2004,
SEC.39; P.L.216-2013, SEC.57.
IC 28-8-4-34 Version a
Commonly controlled corporations
Note: This version of section effective until 7-1-2014. See also
following version of this section, effective 7-1-2014.
Sec. 34. The director may permit corporations that are directly or
indirectly commonly controlled to engage in activities under this
chapter, pursuant to a security device required under section 27 of
this chapter or a deposit required under section 29 of this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-34 Version b
Commonly controlled corporations or organizations
Note: This version of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
Sec. 34. The director may permit corporations or other
organizations that are directly or indirectly commonly controlled to
engage in activities under this chapter, pursuant to a surety bond
required under section 27 of this chapter.
As added by P.L.42-1993, SEC.85. Amended by P.L.216-2013,
SEC.58.
IC 28-8-4-35
Investigations by director; issuance of licenses; controlling
persons; denial of applications
Sec. 35. (a) The director shall begin an investigation after an
application for licensure under this chapter is complete.
(b) The director shall investigate the financial condition and
responsibility, financial and business experience, and character and
general fitness of:
(1) the applicant and any significant affiliate of the applicant;
(2) each executive officer, director, or manager of the applicant,
or any other individual having a similar status or performing a
similar function for the applicant; and
(3) if known, each controlling person.
(c) The director may conduct an onsite investigation of the
applicant, the reasonable cost of which shall be borne by the
applicant.
(d) The director shall issue a license to an applicant authorizing
the applicant to engage in the licensed activities in Indiana for a term
expiring December 31 of the year in which the license is issued if the
director finds that:
(1) the applicant's business will be conducted honestly, fairly,
and in a manner commanding the confidence and trust of the
community; and
(2) the applicant has fulfilled the requirements imposed by this
chapter.
(e) Upon application, the director shall determine whether a
particular person qualifies as a controlling person. The director may
waive any or all requirements of this chapter pertaining to a
controlling person for good cause shown.
(f) If the director finds that:
(1) an applicant does not satisfy the requirements in subsection
(d); or
(2) an application was submitted for the benefit of, or on behalf
of, a person who does not qualify for a license;
the director may deny the application. The director must set forth the
reasons for the denial in writing and send a copy of the reasons to the
applicant.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.57
and P.L.57-2006, SEC.57; P.L.90-2008, SEC.58; P.L.216-2013,
SEC.59.
IC 28-8-4-36
Contesting denial of license applications
Sec. 36. (a) An applicant that is denied a license under section
35(f) of this chapter may, not more than thirty (30) days after receipt
of written notice of the denial, contest the denial by serving a
response on the director.
(b) The serving of a response on the director automatically stays
the denial of the license until a final ruling in the hearing is
announced.
(c) The director shall set a date for a hearing not less than sixty
(60) days after service of the response. A later date may be set with
the denied applicant's consent.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-37
License renewal fees
Sec. 37. The department shall fix an annual fee for renewal of a
license under IC 28-11-3-5. The annual fee shall be paid on or before
December 31 of each year.
As added by P.L.42-1993, SEC.85. Amended by P.L.213-2007,
SEC.80; P.L.217-2007, SEC.78; P.L.216-2013, SEC.60.
IC 28-8-4-38
License renewal; annual requirements; financial statements; fee;
noncompliance; license suspension; late fee; waiver for good cause
Sec. 38. (a) A licensee may renew a license by complying with the
following:
(1) Filing with the director or the director's designee the annual
renewal in the form that is prescribed by the director and sent
by the director to each licensee not later than December 31 of
each year. The renewal must include the following, which,
except for the financial statements described in clause (A), must
be filed not later than December 31:
(A) Either:
(i) a copy of the licensee's most recent audited
consolidated annual financial statements, including a
balance sheet, a statement of income or loss, a statement
of changes in shareholder's equity, and a statement of
changes in financial position; or
(ii) if the licensee is a wholly owned subsidiary, the parent
corporation's or parent organization's most recent
consolidated audited annual financial statements or the
parent corporation's or parent organization's Form 10K
reports filed with the Securities and Exchange
Commission for the previous three (3) years, along with
the licensee's unaudited annual financial statements.
The financial statements required to be submitted under this
clause must be prepared by an independent certified public
accountant authorized to do business in the United States in
accordance with AICPA Statements on Standards for
Accounting and Review Services (SSARS) and must be filed
with the director or the director's designee not later than
April 30 of the year that immediately follows the calendar or
fiscal year covered by the statements.
(B) The number of payment instruments sold by the licensee
in Indiana, the dollar amount of those instruments, and the
dollar amount of outstanding payment instruments sold by
the licensee calculated from the most recent quarter for
which data is available before the date of the filing of the
renewal application, but in no event more than one hundred
twenty (120) days before the renewal date.
(C) Material changes to the information submitted by the
licensee on its original application or as part of a renewal
that have not been reported previously to the director on any
other report or renewal required to be filed under this
chapter.
(D) A list of the licensee's permissible investments.
(E) A list of the locations within Indiana at which business
regulated by this chapter will be conducted by either the
licensee or its authorized delegate, including information
concerning any business, other than the business of money
transmission under this chapter, that will be conducted at
each identified location, as required under section 24(10) of
this chapter.
(2) Paying the annual renewal fee described under section 37 of
this chapter.
(b) A licensee that:
(1) does not:
(A) file:
(i) a renewal; or
(ii) any financial statements required by subsection
(a)(1)(A);
by the renewal filing deadline set by the director; or
(B) pay the renewal fee by December 31 of each year; and
(2) has not been granted an extension of time by the department
to meet the requirements described in subdivision (1);
shall be notified by the department, in writing, that a hearing will be
scheduled at which the licensee will be required to show cause why
its license should not be suspended pending compliance with these
requirements. If after the hearing the license is not suspended, the
department shall require a daily late fee beginning with the date the
renewal, the financial statements, or the annual renewal fee is
required by this chapter in an amount fixed by the department under
IC 28-11-3-5.
(c) The director may, for good cause shown, waive any
requirement of this section.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.58
and P.L.57-2006, SEC.58; P.L.1-2007, SEC.188; P.L.213-2007,
SEC.81; P.L.217-2007, SEC.79; P.L.216-2013, SEC.61.
IC 28-8-4-39
Written reports following bankruptcies or reorganizations, license
revocations or suspensions, and felony indictments and convictions
Sec. 39. A licensee shall file a written report with the director not
later than fifteen (15) days after the occurrence of one (1) or more of
the following events:
(1) The filing for bankruptcy or reorganization by the licensee.
(2) The institution of revocation or suspension proceedings
against the licensee by a state or governmental authority with
regard to the licensee's money transmission activities.
(3) A felony indictment of the licensee or of a key officer or
director of the licensee related to money transmission activities.
(4) A felony conviction of the licensee or a key officer or
director of the licensee related to money transmission activities.
The written report must give details concerning the event.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-40
Repealed
(Repealed by P.L.89-2011, SEC.78.)
IC 28-8-4-40.1
License not transferable or assignable
Sec. 40.1. Except in a transaction approved under section 40.2 of
this chapter, a license is not transferable or assignable.
As added by P.L.89-2011, SEC.58.
IC 28-8-4-40.2
Change in control of licensee; application to department;
timeframe for department's decision; conditions for approval; duty
of licensee to report transfer of securities; director's discretion to
require new license
Sec. 40.2. (a) As used in this section, "control" means possession
of the power directly or indirectly to:
(1) direct or cause the direction of the management or policies
of a licensee, whether through the beneficial ownership of
voting securities, by contract, or otherwise; or
(2) vote at least twenty-five percent (25%) of the voting
securities of a licensee, whether the voting rights are derived
through the beneficial ownership of voting securities, by
contract, or otherwise.
(b) An organization or an individual acting directly, indirectly, or
through or in concert with one (1) or more other organizations or
individuals may not acquire control of any licensee unless the
department has received and approved an application for change in
control. The department has not more than one hundred twenty (120)
days after receipt of an application to issue a notice approving the
proposed change in control. The application must contain the name
and address of the organization, individual, or individuals who
propose to acquire control and any other information required by the
director.
(c) The period for approval under subsection (b) may be extended:
(1) in the discretion of the director for an additional thirty (30)
days; and
(2) not more than two (2) additional times for not more than
forty-five (45) days each time if:
(A) the director determines that the organization, individual,
or individuals who propose to acquire control have not
submitted substantial evidence of the qualifications
described in subsection (d);
(B) the director determines that any material information
submitted is substantially inaccurate; or
(C) the director has been unable to complete the
investigation of the organization, individual, or individuals
who propose to acquire control because of any delay caused
by or the inadequate cooperation of the organization,
individual, or individuals.
(d) The department shall issue a notice approving the application
only after it is satisfied that both of the following apply:
(1) The organization, individual, or individuals who propose to
acquire control are qualified by competence, experience,
character, and financial responsibility to control and operate the
licensee in a legal and proper manner.
(2) The interests of the owners and creditors of the licensee and
the interests of the public generally will not be jeopardized by
the proposed change in control.
(e) The director may determine, in the director's discretion, that
subsection (b) does not apply to a transaction if the director
determines that the direct or beneficial ownership of the licensee will
not change as a result of the transaction.
(f) The president or other chief executive officer of a licensee
shall report to the director any transfer or sale of securities of the
licensee that results in direct or indirect ownership by a holder or an
affiliated group of holders of at least ten percent (10%) of the
outstanding securities of the licensee. The report required by this
subsection must be made not later than ten (10) days after the
transfer of the securities on the books of the licensee.
(g) Depending on the circumstances of the transaction, the
director may reserve the right to require the organization, individual,
or individuals who propose to acquire control of a licensee to apply
for a new license under section 20 of this chapter, instead of
acquiring control of the licensee under this section.
As added by P.L.89-2011, SEC.59. Amended by P.L.6-2012,
SEC.198.
IC 28-8-4-40.5
Other business at money transmission locations; notice to
department
Sec. 40.5. (a) This section applies if, after a person has been
issued a license or renewal license under this chapter, any of the
following apply:
(1) Any business, other than the business of money transmission
under this chapter, will be conducted by the licensee or another
person, other than an authorized delegate that is not under
common control with the applicant, at any location in Indiana
in which the licensee conducts the business of money
transmission under this chapter.
(2) Any information concerning other business conducted at the
locations identified in the licensee's application under section
24(10) of this chapter changes.
(b) For each location described in subsection (a)(1) or (a)(2), the
licensee shall provide to the department the information required
under section 24(10) of this chapter with respect to that location:
(1) not later than fifteen (15) days after the other business
begins operating at the location; or
(2) if the licensee's next application for a renewal license under
section 38 of this chapter is due before the date described in
subdivision (1), in the licensee's next application for a renewal
license under section 38 of this chapter.
As added by P.L.10-2006, SEC.59 and P.L.57-2006, SEC.59.
Amended by P.L.213-2007, SEC.82; P.L.217-2007, SEC.80.
IC 28-8-4-40.6
Felony convictions; notice to department
Sec. 40.6. (a) This section applies if, after a person has been
issued a license or renewal license under this chapter, the licensee,
or any individual described in section 35(b)(2) or 35(b)(3) of this
chapter, has been convicted of a felony under the laws of Indiana or
any other jurisdiction.
(b) If this section applies, the licensee shall provide to the
department the information required under section 24(5)(B) or
25(6)(B) of this chapter, whichever applies:
(1) not later than thirty (30) days after the licensee or individual
described in section 35(b)(2) or 35(b)(3) of this chapter has
been convicted of the felony; or
(2) if the licensee's next license renewal fee under section 37 of
this chapter is due before the date described in subdivision (1),
along with the licensee's next license renewal fee under section
37 of this chapter.
As added by P.L.213-2007, SEC.83; P.L.217-2007, SEC.81.
Amended by P.L.90-2008, SEC.59; P.L.35-2010, SEC.182;
P.L.216-2013, SEC.62.
IC 28-8-4-41
Onsite examinations by director; notice required; fees;
examination of vendors
Sec. 41. (a) The director may conduct an annual onsite
examination of a licensee or an authorized delegate of a licensee.
(b) If the director determines that a reasonable belief exists that
a person is operating without a valid license or in violation of this
chapter, the director has the authority to investigate and examine the
records of that person. The person examined must pay the reasonably
incurred costs of the examination.
(c) Except as provided in section 42(a)(2) of this chapter, the
director must give the licensee forty-five (45) days written notice
before conducting an onsite examination.
(d) If the director determines, based on the licensee's financial
statements and past history of operations in Indiana, that an onsite
examination is unnecessary, the director may waive the onsite
examination.
(e) If the director concludes that an onsite examination of a
licensee is necessary, the licensee shall pay all reasonably incurred
costs of such examination in accordance with the fee schedule
adopted under IC 28-11-3-5. A fee established by the department
under IC 28-11-3-5 may be charged for each day a fee under this
section is delinquent.
(f) An onsite examination may be conducted in conjunction with
examinations to be performed by representatives of agencies of
another state or states. In lieu of an onsite examination, a director
may accept the examination report of an agency of another state, or
a report prepared by an independent accounting firm. A report
accepted under this subsection shall be considered, for all purposes,
to be an official report of the director.
(g) If a licensee contracts with an outside vendor to provide a
service that would otherwise be undertaken internally by the licensee
and be subject to the department's routine examination procedures,
the person that provides the service to the licensee shall, at the
request of the director, submit to an examination by the department.
If the director determines that an examination under this subsection
is necessary or desirable, the examination may be made at the
expense of the person to be examined. If the person to be examined
under this subsection refuses to permit the examination to be made,
the director may order any licensee that receives services from the
person refusing the examination to:
(1) discontinue receiving one (1) or more services from the
person; or
(2) otherwise cease conducting business with the person.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.60
and P.L.57-2006, SEC.60; P.L.35-2010, SEC.183; P.L.27-2012,
SEC.99.
IC 28-8-4-42
Suspected violations; request for additional financial data; onsite
examinations without notice; fees
Sec. 42. (a) If the director has a reasonable basis to believe that a
licensee or an authorized delegate of a licensee is in violation of this
chapter, the director may:
(1) request financial data from the licensee in addition to that
required under section 38(a)(1) of this chapter; or
(2) conduct an in-state, onsite examination of an authorized
delegate's operation or a licensee's location without prior notice
to the authorized delegate or licensee.
(b) All reasonable costs of an examination incurred under
subsection (a)(2) shall be paid by the:
(1) authorized delegate whose operation is examined; or
(2) the licensee whose location is examined;
in accordance with the fee schedule adopted under IC 28-11-3-5. A
fee established by the department under IC 28-11-3-5 may be
charged for each day a fee under this section is delinquent.
As added by P.L.42-1993, SEC.85. Amended by P.L.27-2012,
SEC.100.
IC 28-8-4-43
Making, keeping, and preserving records
Sec. 43. A licensee shall make, keep, and preserve the following
for three (3) years:
(1) A record or records of payment instruments sold.
(2) A general ledger containing all asset, liability, capital
income, and expense accounts for which a general ledger shall
be posted at least monthly.
(3) Settlement sheets, if received from authorized delegates.
(4) Bank statements and bank reconciliation records.
(5) Records of outstanding payment instruments.
(6) Records of each payment instrument paid within the three
(3) years.
(7) A list of the names and addresses of all of the licensee's
authorized delegates, as well as a copy of each authorized
delegate's contract.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-44
Maintenance and availability of records
Sec. 44. (a) The records maintained under section 43 of this
chapter shall be:
(1) maintained in conformity with generally accepted
accounting principles and practices in a manner that will enable
the director to determine whether the licensee is complying with
the provisions of this chapter; and
(2) made reasonably available to the director.
(b) The director shall determine the sufficiency of the records and
whether the licensee has made the required information reasonably
available.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-45
Maintenance of records at foreign locations
Sec. 45. Records maintained under section 43 of this chapter may
be maintained at a location that is outside Indiana if the records are
made accessible to the director after the director has given fifteen
(15) days written notice.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-45.5
Duty to safeguard personal records
Sec. 45.5. The following persons are subject to IC 28-1-2-30.5
with respect to any records maintained by the person:
(1) A person licensed or required to be licensed under this
chapter.
(2) An authorized delegate of a person described in subdivision
(1).
As added by P.L.90-2008, SEC.60.
IC 28-8-4-46
Compliance with money laundering laws; investigation and
enforcement by department
Sec. 46. (a) The licensee or an authorized delegate shall comply
with all state and federal money laundering statutes and regulations,
including the following:
(1) The Bank Secrecy Act (31 U.S.C. 5311 et seq.).
(2) The USA Patriot Act of 2001 (P.L. 107-56).
(3) Any regulations, policies, or reporting requirements
established by the Financial Crimes Enforcement Network of
the United States Department of the Treasury.
(4) Any other state or federal money laundering statutes or
regulations that apply to a licensee or an authorized delegate.
(b) The department shall do the following:
(1) To the extent authorized or required by state law, investigate
potential violations of, and enforce compliance with, state
money laundering statutes or regulations.
(2) Investigate potential violations of federal money laundering
statutes or regulations and, to the extent authorized or required
by federal law:
(A) enforce compliance with the federal statutes or
regulations; or
(B) refer suspected violations of the federal statutes or
regulations to the appropriate federal regulatory agencies.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.61
and P.L.57-2006, SEC.61.
IC 28-8-4-47
Confidentiality of information; exceptions
Sec. 47. (a) Notwithstanding any other provision of law, all
information or reports obtained by the director from an applicant, a
licensee, or an authorized delegate, whether obtained through
reports, applications, examination, audits, investigation, or otherwise,
including:
(1) all information contained in or related to:
(A) examination;
(B) investigation;
(C) operation; or
(D) condition;
reports prepared by, on behalf of, or for the use of the director;
or
(2) financial statements, balance sheets, or authorized delegate
information;
are confidential and may not be disclosed or distributed outside the
department by the director or any officer or employee of the
department, except as provided in subsection (b).
(b) The director may provide for the release of information to
representatives of:
(1) financial institution and money services business
supervisory agencies;
(2) law enforcement agencies; or
(3) prosecutorial agencies or offices;
of a state (as defined in IC 28-2-17-19), the United States, or a
foreign country. An agency or office that receives information from
the director under this subsection shall maintain the confidentiality
of the information as described in IC 28-1-2-30.
(c) Nothing in this section shall prohibit the director from
releasing to the public a list of persons licensed under this chapter or
from releasing aggregated financial data on such licensees.
As added by P.L.42-1993, SEC.85. Amended by P.L.258-2003,
SEC.17; P.L.213-2007, SEC.84; P.L.217-2007, SEC.82;
P.L.90-2008, SEC.61.
IC 28-8-4-48
Suspension or revocation of license; order to show cause; order of
suspension or revocation; relinquishment of license; existing
obligations; emergency order for revocation
Sec. 48. (a) The director may issue to a licensee an order to show
cause why the licensee's license should not be revoked or suspended
for a period determined by the department.
(b) An order issued under subsection (a) must:
(1) include:
(A) a statement of the place, date, and time for a meeting
with the department, which date may not be less than ten
(10) days from the date of the order;
(B) a description of the action contemplated by the
department; and
(C) a statement of the facts or conduct supporting the
issuance of the order; and
(2) be accompanied by a notice stating that the licensee is
entitled to:
(A) a reasonable opportunity to be heard; and
(B) show the licensee's compliance with all lawful
requirements for retention of the license;
at the meeting described in subdivision (1)(A).
(c) After the meeting described in subsection (b)(1)(A), the
department may revoke or suspend the license if the department finds
that:
(1) the licensee has repeatedly and willfully violated:
(A) this chapter or any rule, order, or guidance document
adopted or issued by the department; or
(B) any other state or federal law, regulation, or rule
applicable to the business of money transmission;
(2) the licensee does not meet the licensing qualifications set
forth in this chapter;
(3) the licensee obtained the license for the benefit of, or on
behalf of, a person who does not qualify for the license;
(4) the licensee knowingly or intentionally made material
misrepresentations to, or concealed material information from,
the department; or
(5) facts or conditions exist that, had they existed at the time the
licensee applied for the license, would have been grounds for
the department to deny the issuance of the license.
(d) Whenever the department revokes or suspends a license, the
department shall enter an order to that effect and notify the licensee
of:
(1) the revocation or suspension;
(2) if a suspension has been ordered, the duration of the
suspension;
(3) the procedure for appealing the revocation or suspension
under IC 4-21.5-3-5; and
(4) any other terms and conditions that apply to the revocation
or suspension.
Not later than five (5) days after the entry of the order, the
department shall deliver to the licensee a copy of the order and the
findings supporting the order.
(e) Any person holding a license to engage in the business of
money transmission may relinquish the license by notifying the
department in writing of the relinquishment. However, a
relinquishment under this subsection does not affect the person's
liability for acts previously committed and coming within the scope
of this chapter.
(f) If the director determines it to be in the public interest, the
director may pursue the revocation of a license of a licensee that has
relinquished the license under subsection (e).
(g) If a person's license is revoked, suspended, or relinquished, the
revocation, suspension, or relinquishment does not impair or affect
any obligation owed by any person under any existing lawful
contract.
(h) If the director of the department has just cause to believe an
emergency exists from which it is necessary to protect the interests
of the public, the director may proceed with the revocation of a
license through an emergency or another temporary order under
IC 4-21.5-4.
As added by P.L.42-1993, SEC.85. Amended by P.L.80-1998,
SEC.20; P.L.27-2012, SEC.101.
IC 28-8-4-48.1
Failure to file renewal form or pay renewal fee; revocation or
suspension of license
Sec. 48.1. (a) A license issued by the department under this
chapter may be revoked or suspended by the department if the person
fails to:
(1) file any renewal form required by the department; or
(2) pay any license renewal fee described under section 37 of
this chapter;
not later than sixty (60) days after the due date.
(b) A person whose license is revoked or suspended under this
section may:
(1) pay all delinquent fees and apply for a reinstatement of the
person's license; or
(2) appeal the revocation or suspension to the department for an
administrative review under IC 4-21.5-3.
Pending the decision resulting from a hearing under IC 4-21.5-3
concerning license revocation or suspension, a license remains in
force.
As added by P.L.176-1996, SEC.24. Amended by P.L.89-2011,
SEC.60.
IC 28-8-4-49
Authorized delegates; written contract required; contents;
exemption from licensing requirements; resignation, discharge or
termination; notice to department
Sec. 49. (a) Licensees desiring to conduct licensed activities
through authorized delegates shall authorize each delegate to operate
pursuant to an express written contract, which shall provide for the
following:
(1) That the licensee appoints the person as its delegate with
authority to sell payment instruments and accept funds to be
transmitted by or on behalf of the licensee.
(2) That neither a licensee nor an authorized delegate may
authorize a subdelegate without the written consent of the
director.
(3) That licensees are subject to supervision and regulation by
the director.
(4) An acknowledgment that the authorized delegate consents
to the director's inspection, with or without prior notice to the
licensee or authorized delegate, of the books, records, and
accounts of an authorized delegate of the licensee when the
director has a reasonable basis to believe that the licensee or
authorized delegate is in violation of this chapter.
(5) That authorized delegates are under a duty to act only as
authorized under the contract with the licensee and that an
authorized delegate who exceeds the delegate's authority is
subject to cancellation of the delegate's contract and
disciplinary action by the director.
(b) Subject to sections 50 and 51 of this chapter, an authorized
delegate of a licensee or of a person exempt from licensure under
section 1 of this chapter is exempt from the licensing requirements
of this chapter if the authorized delegate acts within the scope of the
written contract executed under subsection (a) between the
authorized delegate and the licensee or exempt person.
(c) A licensee shall give the department written notice of the
resignation, discharge, or termination of an authorized delegate
against whom allegations were made that accused the authorized
delegate of:
(1) violating this chapter or other laws, regulations, rules, or
industry standards of conduct applicable to money transmission;
or
(2) fraud, dishonesty, theft, or the wrongful taking of property.
The licensee shall provide the department the notice required under
this subsection not later than thirty (30) days after the effective date
of the resignation, discharge, or termination.
As added by P.L.42-1993, SEC.85. Amended by P.L.27-2012,
SEC.102; P.L.216-2013, SEC.63.
IC 28-8-4-50
Compliance by authorized delegates
Sec. 50. (a) An authorized delegate may not make any fraudulent
or false statement or misrepresentation to a licensee or to the
director.
(b) An authorized delegate must comply with the following:
(1) All money transmission or sale or issuance of payment
instrument activities conducted by an authorized delegate shall
be strictly in accordance with the licensee's written procedures
provided to the authorized delegate.
(2) An authorized delegate shall remit all money owing to the
licensee in accordance with the terms of the contract between
the licensee and the authorized delegate. The failure of an
authorized delegate to remit all money owing to a licensee
within the time presented shall result in liability of the
authorized delegate to the licensee for three (3) times the
licensee's actual damages.
(3) All funds, less fees, received by an authorized delegate of a
licensee from the sale or delivery of a payment instrument
issued by a licensee or received by an authorized delegate for
transmission shall, from the time the funds are received by the
authorized delegate until the funds or an equivalent amount are
remitted by the authorized delegate to the licensee, constitute
trust funds owned by and belonging to the licensee. If an
authorized delegate commingles any of the funds with any other
funds or property owned or controlled by the authorized
delegate, all commingled proceeds and other property shall be
impressed with a trust in favor of the licensee in an amount
equal to the amount of the proceeds due the licensee.
(4) An authorized delegate shall report to the licensee the theft
or loss of payment instruments not more than twenty-four (24)
hours after the time the authorized delegate knew or should
have known of the theft or loss.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-51
Suspension and barring of authorized delegates
Sec. 51. (a) If, after notice and a hearing, the director finds that an
authorized delegate of a licensee or a director, an officer, an
employee, or a controlling person of the authorized delegate:
(1) has violated any provision of this chapter or order issued
under this chapter;
(2) has engaged or participated in any unsafe or unsound act
with respect to the business of:
(A) selling or issuing payment instruments of the licensee;
or
(B) money transmission;
(3) has made or caused to be made in an application or report
filed with the director or in any proceeding before the director,
any statement that was at the time and in the circumstances
under which it was made, false or misleading with respect to
any material fact; or
(4) has omitted to state in an application or report filed with the
director a material fact that is required to be stated therein;
the director may issue an order suspending or barring such
authorized delegate from becoming or continuing to be an authorized
delegate of a licensee during the period for which such order is in
effect.
(b) Upon issuance of an order under subsection (a), the licensee
shall terminate the licensee's relationship with the authorized
delegate according to the terms of the order.
(c) Any authorized delegate to whom an order is issued under this
section may apply to the director to modify or rescind the order. The
director shall not grant such application unless the director finds that
it is in the public interest to do so and that it is reasonable to believe
that the person will, if and when the person is permitted to resume
being an authorized delegate of a licensee, comply with all applicable
provisions of this chapter and of any regulation and order issued
under this chapter.
(d) The right of an authorized delegate to whom an order is issued
under this section to petition for judicial review of an order shall not
be affected by the failure of the authorized delegate to apply to the
director to modify or rescind the order.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-52
Applicability of law governing administrative orders and
procedures; venue
Sec. 52. Except as otherwise provided, IC 4-21.5 applies to and
governs all agency action taken by the department under this chapter.
A proceeding for administrative review under IC 4-21.5-3 or judicial
review under IC 4-21.5-5 must be held in Marion County.
As added by P.L.42-1993, SEC.85. Amended by P.L.35-2010,
SEC.184.
IC 28-8-4-53
Civil penalties
Sec. 53. (a) If the department determines, after notice and an
opportunity to be heard, that a person has violated this chapter, the
department may, in addition to or instead of all other remedies
available under this chapter, impose upon the person a civil penalty
not greater than ten thousand dollars ($10,000) per violation.
(b) A penalty collected under this section shall be deposited into
the financial institutions fund established by IC 28-11-2-9.
As added by P.L.42-1993, SEC.85. Amended by P.L.89-2011,
SEC.61.
IC 28-8-4-54 Version a
Claims against licensees and authorized delegates
Note: This version of section effective until 7-1-2014. See also
following version of this section, effective 7-1-2014.
Sec. 54. A claim against a licensee or its authorized delegate may
be brought by:
(1) the claimant filing suit against the security device provided
for in section 27 of this chapter or the deposit provided for in
section 29 of this chapter; or
(2) the director filing suit on behalf of a claimant, in one (1)
action or in successive actions.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-54 Version b
Claims against licensees and authorized delegates
Note: This version of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
Sec. 54. A claim against a licensee or its authorized delegate may
be brought by:
(1) the claimant filing suit against the surety bond provided for
in section 27 of this chapter; or
(2) the director filing suit on behalf of a claimant, in one (1)
action or in successive actions.
As added by P.L.42-1993, SEC.85. Amended by P.L.216-2013,
SEC.64.
IC 28-8-4-55
Compromise, settlement, and collection of civil penalties
Sec. 55. The director, in the exercise of reasonable judgment, is
authorized to compromise, settle, and collect civil penalties from a
person for a violation of:
(1) a provision of this chapter; or
(2) an order issued or promulgated pursuant to this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-56
Injunctions
Sec. 56. If it appears to the director that a person has committed
or is about to commit a violation of a provision of this chapter or an
order of the director, the director may apply to a court having
jurisdiction for:
(1) an order enjoining such person from violating or continuing
to violate this chapter or such other order as the nature of the
case may require; or
(2) injunctive or such other relief as the nature of the case may
require.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-57
Consent orders
Sec. 57. (a) The director may enter into a consent order with a
person to resolve a matter arising under this chapter.
(b) A consent order must comply with the following provisions:
(1) Be signed by the person to whom it is issued or an
authorized representative.
(2) Indicate agreement to the terms contained within the
consent.
(c) A consent order need not:
(1) constitute an admission by a person that a provision of this
chapter or an order promulgated or issued thereunder has been
violated; or
(2) constitute a finding by the director that such person has
violated a provision of this chapter or an order promulgated or
issued thereunder.
(d) Notwithstanding the issuance of a consent order, the director
may seek civil or criminal penalties or compromise civil penalties
concerning matters encompassed by the consent order, unless the
consent order by its terms expressly precludes the director from
doing so.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-58 Version a
Violations
Note: This version of section effective until 7-1-2014. See also
following version of this section, effective 7-1-2014.
Sec. 58. (a) A person who knowingly or intentionally violates a
provision of this chapter for which a penalty is not specifically
provided commits a Class A misdemeanor.
(b) A person who knowingly or intentionally makes a material,
false statement in a document filed or required to be filed under this
chapter, with the intent to deceive the recipient of the document,
commits a Class C felony.
(c) A person who knowingly or intentionally fails to file a
document required to be filed under this chapter commits a Class C
felony.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-58 Version b
Violations
Note: This version of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
Sec. 58. (a) A person who knowingly or intentionally violates a
provision of this chapter for which a penalty is not specifically
provided commits a Class A misdemeanor.
(b) A person who knowingly or intentionally makes a material,
false statement in a document filed or required to be filed under this
chapter, with the intent to deceive the recipient of the document,
commits a Level 5 felony.
(c) A person who knowingly or intentionally fails to file a
document required to be filed under this chapter commits a Level 5
felony.
As added by P.L.42-1993, SEC.85. Amended by P.L.158-2013,
SEC.301.
IC 28-8-4-59
Rules and regulations
Sec. 59. (a) Rules and regulations promulgated by the director
pursuant to authority conferred by this chapter will be pursuant to
IC 4-22-2.
(b) At the time the director files a notice of proposed adoption,
amendment, or repeal of a rule for public comment under this
chapter, a copy of the notice will be sent by first class mail postage
prepaid to all then current licensees and applicants for licenses under
this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-60
Jurisdiction
Sec. 60. A licensee, an authorized delegate, or a person who
knowingly engages in business activities that are regulated under this
chapter, with or without filing an application, is considered to have
consented to the jurisdiction of the courts of Indiana for all actions
arising under this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-61
Administration of chapter
Sec. 61. The division of consumer credit shall have charge of the
administration of this chapter.
As added by P.L.42-1993, SEC.85.
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