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IC 28-8-5
Chapter 5. Cashing Checks
IC 28-8-5-1
Application of chapter
Sec. 1. (a) This chapter does not apply to a financial institution
organized under IC 28 or federal law.
(b) This chapter does not apply to a person principally engaged in
the bona fide retail sale of goods or services if:
(1) the person, either incidental to or independent of a retail sale
of goods or services, from time to time cashes checks; and
(2) the consideration (as defined in section 3 of this chapter)
charged for cashing checks does not exceed five dollars ($5).
As added by P.L.42-1993, SEC.86. Amended by P.L.122-1994,
SEC.104; P.L.213-2007, SEC.85; P.L.217-2007, SEC.83;
P.L.89-2011, SEC.62.
IC 28-8-5-2
Check or checks
Sec. 2. As used in this chapter, "check" or "checks" includes a
check, draft, money order, or personal money order.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-2.5
Check cashing transaction
Sec. 2.5. As used in this chapter, "check cashing transaction"
means a transaction under this chapter in which there is no written or
implied agreement to hold the check for more than three (3) business
days.
As added by P.L.80-1998, SEC.21.
IC 28-8-5-3
Consideration
Sec. 3. As used in this chapter, "consideration" includes a
premium charged for the sale of goods or services in excess of the
cash price of the sale of such goods or services.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-4
Department
Sec. 4. As used in this chapter, "department" means the members
of the department of financial institutions.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-5
Repealed
(Repealed by P.L.89-2011, SEC.78.)
IC 28-8-5-6
Licensed casher of checks
Sec. 6. As used in this chapter, "licensed casher of checks" means
a person licensed by the department to engage in business pursuant
to the provisions of this chapter.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-7
Licensee
Sec. 7. As used in this chapter, "licensee" means a licensed casher
of checks.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-8
Location
Sec. 8. As used in this chapter, "location" means a fixed or
ambulatory place of business approved by the department.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-9
Person
Sec. 9. As used in this chapter, "person" means any individual,
sole proprietorship, partnership, trust, joint venture, limited liability
company, corporation, unincorporated organization, or other form of
entity, however organized.
As added by P.L.42-1993, SEC.86. Amended by P.L.90-2008,
SEC.62.
IC 28-8-5-10
Resolutions for administration of chapter
Sec. 10. The department may make regulations and establish
policies and guidelines by resolution for the administration of this
chapter.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-11
License required; application; other business at check cashing
locations; application fee; tax warrant list
Sec. 11. (a) A person shall not engage in the business of cashing
checks for consideration without first obtaining a license.
(b) Each application for a license shall be in writing in such form
as the director may prescribe and shall include all of the following:
(1) The following information pertaining to the applicant:
(A) Name.
(B) Residence address.
(C) Business address.
(2) The following information pertaining to any individual
described in section 12(b)(1) of this chapter:
(A) Name.
(B) Residence address.
(C) Business address.
(D) Whether the person:
(i) is, at the time of the application, under indictment for
a felony under the laws of Indiana or any other
jurisdiction; or
(ii) has been convicted of or pleaded guilty or nolo
contendere to a felony under the laws of Indiana or any
other jurisdiction.
(3) The address where the applicant's office or offices will be
located. If any business, other than the business of cashing
checks under this chapter, will be conducted by the applicant or
another person at any of the locations 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.
(4) 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:
(A) the person provides to the department a statement from
the department of state revenue that the person's tax warrant
has been satisfied; or
(B) the department receives a notice from the commissioner
of the department of state revenue under IC 6-8.1-8-2(k).
(5) Such other data, financial statements, and pertinent
information as the director may require.
(c) The application shall be filed with a nonrefundable fee fixed
by the department under IC 28-11-3-5.
As added by P.L.42-1993, SEC.86. Amended by P.L.122-1994,
SEC.105; P.L.10-2006, SEC.62 and P.L.57-2006, SEC.62;
P.L.213-2007, SEC.86; P.L.217-2007, SEC.84; P.L.90-2008,
SEC.63; P.L.35-2010, SEC.185; P.L.172-2011, SEC.135.
IC 28-8-5-12
Issuance and refusal of licenses; evidence of compliance; criminal
background checks
Sec. 12. (a) The department shall determine the financial
responsibility, business experience, character, and general fitness of
the applicant before issuing the license.
(b) The department may refuse to issue a license for any of the
following reasons:
(1) Any of the following has been convicted of a felony under
the laws of Indiana or any other jurisdiction:
(A) An executive officer, director, or manager of the
applicant, or any other individual having a similar status or
performing a similar function for the applicant.
(B) Any person directly or indirectly owning of record or
owning beneficially at least ten percent (10%) of the
outstanding shares of any class of equity security of the
applicant.
(2) The application was submitted for the benefit of, or on
behalf of, a person who does not qualify for a license.
(c) The director of the department may request evidence of
compliance with this section by the licensee at:
(1) the time of application;
(2) the time of renewal of the licensee's license; or
(3) any other time considered necessary by the director.
(d) For purposes of subsection (c), 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 any individual described in
subsection (b)(1);
(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 (c). 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.
As added by P.L.42-1993, SEC.86. Amended by P.L.80-1998,
SEC.22; P.L.63-2001, SEC.21 and P.L.134-2001, SEC.23;
P.L.10-2006, SEC.63 and P.L.57-2006, SEC.63; P.L.213-2007,
SEC.87; P.L.217-2007, SEC.85; P.L.90-2008, SEC.64; P.L.35-2010,
SEC.186.
IC 28-8-5-13
Licenses not transferable or assignable
Sec. 13. Except in a transaction approved under section 13.1 of
this chapter, a license is not transferable or assignable.
As added by P.L.42-1993, SEC.86. Amended by P.L.89-2011,
SEC.63.
IC 28-8-5-13.1
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. 13.1. (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 11 of this chapter, instead of
acquiring control of the licensee under this section.
As added by P.L.89-2011, SEC.64. Amended by P.L.6-2012,
SEC.199.
IC 28-8-5-14
Expiration of licenses
Sec. 14. A license issued pursuant to this chapter expires on July
1 of the year following the date of issuance unless earlier suspended,
relinquished, or revoked.
As added by P.L.42-1993, SEC.86. Amended by P.L.27-2012,
SEC.103.
IC 28-8-5-15
Renewal of licenses
Sec. 15. (a) To remain in force, a license must be renewed not
later than July 1 of each year, beginning with the year following the
date of issuance, as set forth in section 14 of this chapter. A licensee
may renew a license issued under this chapter by filing a renewal
application as prescribed by the director of the department. The
department shall prescribe a form for the renewal application. To be
accepted for processing, a renewal application must be accompanied
by:
(1) the license renewal fee described in subsection (b); and
(2) all information and documents requested by the director of
the department.
(b) A licensee that seeks to renew a license issued under this
chapter shall pay to the department before July 1 of each year a fee
fixed by the department under IC 28-11-3-5 as a renewal fee. The
department may fix a daily late fee under IC 28-11-3-5 for a:
(1) renewal license application; or
(2) renewal fee;
that is received by the department after July 1.
As added by P.L.42-1993, SEC.86. Amended by P.L.35-2010,
SEC.187; P.L.89-2011, SEC.65.
IC 28-8-5-16
Check cashing requirements
Sec. 16. (a) A licensee must do the following:
(1) Conspicuously display at each place of business a notice to
the public stating the maximum charges for cashing checks.
(2) Make payment to a customer for whom a check is being
cashed upon presentment of the check.
(3) Endorse the name in which the licensee is licensed on all
checks before depositing them in a financial institution.
(4) Cash a check made payable only to a natural person as
payee unless the licensee has previously obtained appropriate
documentation from a payee clearly indicating the authority of
the natural person or persons cashing the check on behalf of the
payee.
(b) If a licensee engages in a check cashing transaction in which
the amount on the check is at least three thousand dollars ($3,000) or
in which the sum of the amounts on two (2) or more checks from the
same customer on the same day total at least three thousand dollars
($3,000), the licensee must obtain:
(1) the thumbprint of the customer or a photograph of both the
customer and the check;
(2) the full name of the customer;
(3) the residence address of the customer; and
(4) the identification of the customer by:
(i) Social Security number;
(ii) driver's license number;
(iii) passport number; or
(iv) other traceable record.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-17
Check cashing fee limitations
Sec. 17. (a) Except as otherwise provided in this chapter, a
licensee may not charge check cashing fees in excess of:
(1) the greater of ten dollars ($10) or ten percent (10%) of the
face amount of a check, in the case of a personal check; or
(2) the greater of five dollars ($5) or five percent (5%) of the
face amount of a check, in the case of all other checks.
(b) Except as provided in this chapter, a licensee or the licensee's
agent may not accept multiple checks from a:
(1) person;
(2) person's spouse; or
(3) person's agent;
drawn on the person's account with the intent that the licensee may
collect multiple or increased fees for cashing the checks.
As added by P.L.42-1993, SEC.86. Amended by P.L.80-1998,
SEC.23; P.L.213-2007, SEC.88; P.L.217-2007, SEC.86.
IC 28-8-5-18
Record keeping; duty to safeguard personal records
Sec. 18. (a) A licensee shall keep its books, accounts, and records
satisfactory to the department for each transaction for at least three
(3) years from the transaction date.
(b) A licensee shall keep its books, accounts, and records separate
from those of any other type of business and in a manner that reflects
the order of the licensee's transactions.
(c) A person licensed or required to be licensed under this chapter
is subject to IC 28-1-2-30.5 with respect to any records maintained
by the person.
As added by P.L.42-1993, SEC.86. Amended by P.L.90-2008,
SEC.65.
IC 28-8-5-18.3
Other business at check cashing locations; notice to department
Sec. 18.3. (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 cashing checks
under this chapter, will be conducted by the licensee or another
person at any location in Indiana in which the licensee conducts
the business of cashing checks under this chapter.
(2) Any information concerning other business conducted at the
locations identified in the licensee's application under section
11(b)(3) 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 11(b)(3) 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 15 of this chapter is due before the date described in
subdivision (1), in the licensee's next application for a renewal
license under section 15 of this chapter.
As added by P.L.10-2006, SEC.64 and P.L.57-2006, SEC.64.
IC 28-8-5-18.4
Felony convictions or pleas; notice to department
Sec. 18.4. (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 11(b)(2) of this chapter, has
been convicted of or pleaded guilty or nolo contendere to 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 11(b)(2)(D) of
this chapter:
(1) not later than thirty (30) days after the licensee or individual
described in section 11(b)(2) of this chapter has been convicted
of or pleaded guilty or nolo contendere to the felony; or
(2) if the licensee's next license renewal fee under section 15 of
this chapter is due before the date described in subdivision (1),
along with the licensee's next license renewal fee under section
15 of this chapter.
As added by P.L.213-2007, SEC.89; P.L.217-2007, SEC.87.
Amended by P.L.35-2010, SEC.188.
IC 28-8-5-18.5
Checks drawn on valid accounts and deposited with intent to draw
funds
Sec. 18.5. The check in a check cashing transaction, to the best of
the licensee's knowledge, must be drawn on a valid, open, and active
account and must be deposited by the licensee into a financial
institution with the intent to draw the funds of that check.
As added by P.L.80-1998, SEC.24.
IC 28-8-5-19
Examination of books, accounts, and records; fees; examination of
vendors
Sec. 19. (a) The department may examine the books, accounts,
and records of a licensee and may make investigations to determine
compliance.
(b) If the department examines the books, accounts, and records
of a licensee, the licensee shall pay all reasonably incurred costs of
the 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.
(c) 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.86. Amended by P.L.10-2006, SEC.65
and P.L.57-2006, SEC.65; P.L.35-2010, SEC.189; P.L.27-2012,
SEC.104.
IC 28-8-5-20
Investigation procedures
Sec. 20. In making investigations concerning the compliance of a
licensee the department may:
(1) administer oaths;
(2) subpoena witnesses; and
(3) require the production of:
(i) books, documents, or other tangible items; and
(ii) information pertaining to the identity of and location of
persons having knowledge of facts concerning compliance
with this chapter.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-21
Examination of records located outside Indiana
Sec. 21. If the licensee's records are located outside Indiana, the
licensee shall either make them available to the department at a
convenient location within Indiana or pay the reasonable and
necessary expenses for the department or its representative to
examine them at the place where they are maintained.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-21.1
Applicability of law governing administrative orders and
procedures; venue
Sec. 21.1. 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.35-2010, SEC.190.
IC 28-8-5-22
Suspension or revocation of license; order to show cause; order of
suspension or revocation; relinquishment of license; existing
obligations; emergency order for revocation
Sec. 22. (a) The department 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 cashing checks for
consideration;
(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
cashing checks for consideration 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.86. Amended by P.L.176-1996,
SEC.25; P.L.80-1998, SEC.25; P.L.27-2012, SEC.105.
IC 28-8-5-22.5
Failure to file renewal form or pay renewal fee; revocation or
suspension of license
Sec. 22.5. (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 applications prescribed by the director; or
(2) pay any license renewal fee described under section 15 of
this chapter;
not later than sixty (60) days after the date the renewal is due.
(b) A person whose license is revoked or suspended under this
section may:
(1) pay all delinquent fees and apply for reinstatement of the
person's license; or
(2) appeal the revocation 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.26. Amended by P.L.35-2010,
SEC.191; P.L.89-2011, SEC.66.
IC 28-8-5-23
Investigations; void check cashing transactions
Sec. 23. (a) If the department determines that a reasonable belief
exists that a person is operating without a valid license or in violation
of this chapter, the department may investigate the person.
(b) If a person knowingly acts as a casher of checks without the
license required by section 12 of this chapter, the check cashing
transaction is void and the customer is not required to pay any check
cashing fees to the person. If the customer has paid any check
cashing fees to the person, the customer, or the department on behalf
of the customer, is entitled to recover the payment from the person.
As added by P.L.42-1993, SEC.86. Amended by P.L.172-1997,
SEC.24.
IC 28-8-5-24
Civil penalties; civil action by department
Sec. 24. (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) In addition to or instead of imposing a civil penalty under
subsection (a), the department may bring a civil action against a
person for violating this chapter.
(c) If the court finds that the defendant is guilty of violating this
chapter, the court may assess a civil penalty not to exceed five
thousand dollars ($5,000) per violation.
(d) Civil penalties 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.86. Amended by P.L.89-2011,
SEC.67.
IC 28-8-5-24.5
Compliance with money laundering laws; investigation and
enforcement by department
Sec. 24.5. (a) A licensee 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.
(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.10-2006, SEC.66 and P.L.57-2006, SEC.66.
IC 28-8-5-25
Violations
Sec. 25. A licensee who violates the provisions of this chapter
commits a Class A misdemeanor.
As added by P.L.42-1993, SEC.86.
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