2014 Indiana Code TITLE 28. FINANCIAL INSTITUTIONS ARTICLE 5. INDUSTRIAL LOAN AND INVESTMENT COMPANIES CHAPTER 1. INDUSTRIAL LOAN AND INVESTMENT ACT
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IC 28-5
ARTICLE 5. INDUSTRIAL LOAN AND INVESTMENT
COMPANIES
IC 28-5-1
Chapter 1. Industrial Loan and Investment Act
IC 28-5-1-1
Citation
Sec. 1. This chapter shall be known and may be cited as The
Indiana Industrial Loan and Investment Act.
(Formerly: Acts 1935, c.181, s.1.) As amended by P.L.263-1985,
SEC.148.
IC 28-5-1-2
Application of chapter
Sec. 2. This chapter shall be applicable to all corporations engaged
or attempting to engage in business on or after June 7, 1937, as an
industrial loan and investment company pursuant to the provisions of
this chapter.
(Formerly: Acts 1935, c.181, s.2; Acts 1937, c.105, s.1.) As amended
by P.L.263-1985, SEC.149.
IC 28-5-1-3
Definitions; department's powers
Sec. 3. As used in this chapter and unless a different meaning
appears from the context:
(a) The term "capital and surplus" or "unimpaired capital and
unimpaired surplus" has the meaning set forth in 12 CFR 32.2.
(b) The term "company" shall mean and include any corporation
to which this chapter is applicable.
(c) The term "department" means the department of financial
institutions of the state of Indiana.
(d) The department is hereby authorized to approve the issue of
capital and investment notes and capital debentures by any company
to create capital and surplus, but no such notes and debentures shall
be authorized or approved by the department unless such notes and
debentures shall, by their terms, provide that the debt, including all
accrued and unpaid interest, evidenced thereby shall be subordinate,
in order of priority on liquidation, to all of the obligations of the
company to the holders of its installment and fully paid certificates
of indebtedness or investment and creditors other than such creditors
and holders who have expressly agreed otherwise and other than
creditors who are such by reason of the ownership of such notes or
debentures which the department is authorized to approve by this
section.
(Formerly: Acts 1935, c.181, s.3; Acts 1937, c.105, s.2; Acts 1955,
c.20, s.1; Acts 1971, P.L.399, SEC.1.) As amended by P.L.263-1985,
SEC.150; P.L.213-2007, SEC.56; P.L.217-2007, SEC.54;
P.L.3-2008, SEC.221.
IC 28-5-1-4
Definitions; certificate of authority; branches; automated teller
machines
Sec. 4. (a) As used in this section:
"Automated teller facility" means electronic or mechanical
equipment that performs routine transactions for the public at
locations off premises of the principal office or branch office of a
company that holds a certificate to engage in business under this
chapter and that is authorized to issue, negotiate, and sell certificates
of investment or indebtedness.
"Branch" means any office, agency, mobile unit, messenger
service, or other place of business at which:
(1) deposits are received;
(2) negotiable or transferable instruments or orders, or similar
instruments, are paid; or
(3) money is lent.
However, the term does not include the principal office of a company
or an automated teller facility.
"Financial institution" has the same meaning as in IC 28-1-1-3.
(b) Any domestic corporation organized under the general
corporation laws of Indiana may engage in business as an industrial
loan and investment company subject to the limitations and
restrictions set forth in this chapter. The department may issue a
certificate authorizing a corporation to engage in business under this
chapter after the department considers and investigates all the
following:
(1) The financial standing and character of the incorporators,
organizers, directors, principal shareholders, or controlling
corporations.
(2) The character, qualifications, and experience of the officers
and directors of the corporation.
(3) The future earnings prospects for the proposed corporation
in the community in which the corporation will be located.
(4) The adequacy of the corporation's capital.
If the department determines any of the factors described in
subdivisions (1) through (4) unfavorably, the department may not
issue a certificate authorizing the corporation to engage in business
under this chapter. Certificates issued under this section must state
whether the corporation is authorized to accept deposits and, if not,
must provide that the corporation may do business under this article
only as restricted by section 21 of this chapter.
(c) Any company that is authorized to accept deposits and that
holds a certificate to engage in business under this chapter is entitled
to establish one (1) or more branches de novo and one (1) or more
branches by acquisition in any location or locations within Indiana,
at which any business of the company may be transacted to the same
extent as at the principal office of the company.
(d) As a condition to the establishment and operation of a branch
or branches under this section, the company must:
(1) obtain prior written approval of the department;
(2) operate each branch under the correct name of the company
and its name must contain in addition the word "branch"; and
(3) demonstrate that the applicant company will have adequate
capital, sound management, and adequate future earnings
prospects after the establishment of the branch.
(e) The location of the principal office or any branch established
under this section may be changed at any time when authorized by
the board of directors of the company and approved by the
department.
(f) Any company desiring to open or establish one (1) or more
branches or change location of an existing branch or the principal
office must file a written application therefor, in such form and
containing such information as may be prescribed by the department.
If the department determines that the requirements of subsection (d)
have been satisfied, the department may in its discretion approve the
application.
(g) A company is entitled to open or establish an automated teller
facility in any location within Indiana or as permitted by the laws of
the state in which the automated teller machine is to be located. An
automated teller facility may be owned or operated individually by
any company or jointly on a cost sharing or fee basis.
(h) A branch by acquisition may be established under this section
only if done in compliance with applicable provisions of IC 28-1-7
or IC 28-1-8.
(i) A company that is authorized to accept deposits and that holds
a certificate to engage in business under this chapter is entitled to
establish one (1) or more branches de novo and one (1) or more
branches by acquisition in any location outside Indiana. Any business
of the company may be transacted at a branch established under this
subsection to the same extent as at the principal office of the
company, subject to IC 28-2-18-19.
(Formerly: Acts 1935, c.181, s.4; Acts 1951, c.79, s.1; Acts 1967,
c.45, s.1; Acts 1971, P.L.400, SEC.1; Acts 1973, P.L.284, SEC.1.) As
amended by P.L.141-1984, SEC.9; P.L.269-1985, SEC.1;
P.L.270-1985, SEC.1; P.L.33-1991, SEC.46; P.L.171-1996, SEC.43;
P.L.192-1997, SEC.11; P.L.141-2005, SEC.9; P.L.90-2008, SEC.36.
IC 28-5-1-5
Capital requirements
Sec. 5. The capital stock of any company engaged in business
under the provisions of this chapter shall be not less than fifty
thousand dollars ($50,000), which said capital stock shall be fully
paid to the corporation in cash and shall not at any time thereafter be
voluntarily reduced below the amount originally paid in. In the event
the capital of any such company should for any reason become
impaired, the right to issue certificates of indebtedness or investment
as provided in this chapter shall forthwith be suspended until said
capital stock has been restored to the amount originally paid in.
(Formerly: Acts 1935, c.181, s.5.) As amended by P.L.263-1985,
SEC.151.
IC 28-5-1-6
Corporate powers
Sec. 6. (a) Every company may exercise all the powers conferred
upon domestic corporations by IC 23-1 but only to the extent that
those powers may be necessary, convenient, or expedient to
accomplish the purposes for which it is organized. Subject to the
restrictions and limitations contained in this chapter, every company
may exercise the following powers:
(1) To issue, negotiate, and sell its secured or unsecured
certificates of investment or indebtedness, subject to subdivision
(16), upon terms and conditions, in any form, and payable at
times that are not inconsistent with this chapter and, subject to
subsection (c), bearing a rate of interest approved by the
department.
(2) To make, purchase, discount, or otherwise acquire
extensions of credit under IC 24-4.5.
(3) To lend money without security or upon the security of
comakers, personal endorsement, or the mortgage of real or
personal property or the mortgage or pledge of bailment leases
or rentals due and to become due thereunder and other choses in
action, and to contract for interest, discount, fees, charges, or
other consideration fixed or permitted by any laws of Indiana
concerning interest, discount, or usury.
(4) To discount, purchase, or otherwise acquire notes, bills of
exchange, acceptances, bailment leases, and the property
covered thereby or the rentals due or to become due thereunder
or other choses in action and, subject to such restrictions the
department imposes, to become owner or lessor of personal or
real property acquired upon the request and for the use of a
customer, and to incur additional obligations incident to
becoming an owner or lessor of the property. The liability of a
lessee under the lease does not constitute an obligation (as
defined in section 8 of this chapter).
(5) To purchase or construct buildings and hold legal title to
them, to be leased for public purposes to municipal corporations
or other public authorities having resources sufficient to make
payment of all rentals as they become due. Each lease
agreement shall provide that upon expiration, the lessee shall
become owner of the building.
(6) To invest in bonds, notes, or certificates which are:
(A) the direct or indirect obligations of the United States or
of the state;
(B) obligations of mutual funds or financial institutions if the
obligations represent a participation in a fund invested in, or
are secured by, direct or indirect obligations of the United
States owned by the mutual fund or financial institution;
(C) the direct obligations of a civil or school county,
township, city, town, other taxing district, or municipality of
Indiana;
(D) a special taxing district in Indiana;
(E) issued by or in the name of:
(i) the trustees of Indiana University;
(ii) the trustees of Purdue University;
(iii) the trustees of Ball State University;
(iv) the trustees of Indiana State University; or
(v) the Indiana finance authority;
(F) issued by or in the name of any municipality of Indiana
and payable from the revenues to be derived from the
operation of facilities for the production or distribution of
water, electricity, gas, or from the operation of sewage
works; or
(G) the obligations of any Indiana toll road commission,
public library, or schoolhouse holding corporation first
mortgage bonds;
which district, municipality, taxing unit, or corporation is not
then in default in the payment of either principal or interest on
any of its funded obligations and has not so defaulted for a
period of more than six (6) months within the five (5) year
period immediately preceding the purchase of the securities.
(7) To invest in bonds, notes, or debentures rated in one (1) of
the first four (4) classifications established by one (1) or more
standard rating services specified by the department that satisfy
requirements of marketability prescribed periodically by the
department that are the obligations of a person, a firm, a limited
liability company, a corporation, a state, a territory, an insular
possession of the United States, or a county, township, town,
city, taxing district, or municipality thereof which is not then in
default in the payment of either principal or interest on any of
its funded obligations and has not so defaulted within the five
(5) year period immediately preceding the purchase of the
securities and other investment securities prescribed by the
department by rule. As used in this section, the term "investment
securities" means marketable obligations evidencing
indebtedness of a person, firm, limited liability company, or
corporation in the form of bonds, notes, or debentures
commonly known as "investment securities" and the definition
of the term "investment securities" prescribed by the department
by rule. Except as is otherwise provided in this chapter or
otherwise permitted by law, nothing contained in this
subdivision authorizes the purchase by an industrial loan and
investment company of shares of stock or other securities,
unless the purchase is necessary to prevent loss under a debt
previously contracted in good faith and stocks or other securities
so purchased or acquired shall, within six (6) months from the
time of its purchase, be sold or disposed of at public or private
sale, unless otherwise ordered by the department.
(8) To invest in bonds or debentures issued under and by the
authority of the Federal Home Loan Bank Act (12 U.S.C. 1421
through 1429), or of the Home Owners' Loan Act (12 U.S.C.
1461 through 1468), or obligations issued by or for farm credit
banks, and banks for cooperatives under the Farm Credit Act of
1971 (12 U.S.C. 2001 through 2279aa-14).
(9) To invest in insured shares of an insured savings association
organized under the laws of Indiana, and in insured shares of an
insured federal savings association whose principal place of
business is located in Indiana; and in certificates of indebtedness
or investment of an industrial loan and investment company
organized under the laws of Indiana. However, not more than
twenty percent (20%) of the resources of the company may be
invested in the insured shares of any such association nor more
than ten percent (10%) of the company's capital and surplus in
such certificates of industrial loan and investment companies.
(10) To make loans and advances of credit and purchases of
obligations representing loans and advances of credit as are
eligible for insurance by the federal housing administrator, and
to obtain insurance from the administrator.
(11) To make loans secured by mortgage on real property or
leasehold if:
(A) the mortgage is insured by the federal housing
administrator; or
(B) the company makes a commitment to insure and to
obtain insurance from the administrator, if the mortgage is
not insured by the federal housing administrator.
(12) To purchase, invest in, and dispose of notes or bonds
secured by mortgage or trust deed insured by the federal
housing administrator or debentures issued by the federal
housing administrator, or bonds or other securities insured by
national mortgage associations.
(13) To discount, purchase, or otherwise acquire charge
accounts, and drafts and bills of exchange evidencing charge
accounts and to impose and collect monthly service charges and
maintenance charges on charge accounts, drafts, or bills of
exchange which are owned or acquired in amounts agreed upon
between the company and the obligor, or obligors, on charge
accounts, drafts, and bills of exchange.
(14) To purchase or otherwise acquire property, real or personal,
tangible or intangible, in which the company has a security
interest to secure a debt owing to the company contracted in
good faith or the purchase or acquisition of which property is
considered expedient to prevent loss from a debt owing to the
company contracted in good faith, and for such purpose to
engage in any lawful business considered necessary or
expedient by the company to preserve, protect, or make saleable
the property. Property thus purchased or acquired shall be sold
and disposed of within two (2) years, or a longer period
permitted by the department, after the purchase or acquisition.
(15) To act as trustee of a trust created in the United States and
forming part of a stock bonus, pension, or profit sharing plan
that is qualified for tax treatment under Section 401(d) of the
Internal Revenue Code, and to act as trustee or custodian of an
individual retirement account within the meaning of Section 408
of the Internal Revenue Code, if the funds of that trust or
account are only invested in certificates of investment or
indebtedness of the company or in obligations or securities
issued by that company. All funds held under this subdivision
in a fiduciary capacity may be commingled by the company for
appropriate investment purposes. However, individual records
shall be kept by the fiduciary for each participant and shall show
in proper detail all transactions engaged in under the authority
of this subdivision.
(16) To do anything necessary and appropriate to obtain or
maintain federal deposit insurance under the Federal Deposit
Insurance Corporation Act (12 U.S.C. 1811 through 1833e) or
insurance under any other federal or Indiana law providing
insurance for certificates of investment or indebtedness issued
by a company. A company that obtains and maintains federal
deposit insurance is not required to obtain approval from the
department concerning the rate of interest payable on, or the
form, the terms, or the conditions of the certificates of
investment or indebtedness, and the company may exercise all
of the powers that are conferred upon institutions maintaining
federal deposit insurance that are not in conflict with Indiana
law.
(17) To become a member of a federal home loan bank and
acquire, own, pledge, sell, assign, or otherwise dispose of shares
of the capital stock of a federal home loan bank.
(18) To borrow money and procure advances from a federal
home loan bank and to transfer, assign to, and pledge with the
federal home loan bank any of the bonds, notes, contracts,
mortgages, securities, or other property of the company held or
acquired as security for the payment of the loans and advances.
(19) To possess and exercise all rights, powers, and privileges
conferred upon and do and perform all acts and things required
of members or shareholders of a federal home loan bank, or by
the provisions of 12 U.S.C. 1421 through 1449.
(20) Subject to section 6.3 of this chapter, to exercise the rights
and privileges (as defined in section 6.3(a) of this chapter) that
are or may be granted to national banks domiciled in Indiana.
(b) No law of this state prescribing the nature, amount, or form of
security or requiring security upon which loans or advances of credit
may be made, or prescribing or limiting interest rates upon loans or
advances of credit, or prescribing or limiting the period for which
loans or advances of credit may be made, applies to loans, advances
of credit, or purchases made pursuant to subsection (a)(10), (a)(11),
or (a)(12).
(c) If any national or state chartered bank or savings association
is not limited by law with regard to the rate of interest payable on any
type or category of checking account, savings account, or deposit,
certificate of deposit, membership share, or other account, then
industrial loan and investment companies are similarly not limited
with regard to the interest payable on certificates of investment or
indebtedness.
(Formerly: Acts 1935, c.181, s.6; Acts 1937, c.105, s.3; Acts 1955,
c.20, s.2; Acts 1969, c.129, s.1; Acts 1971, P.L.399, SEC.2; Acts
1973, P.L.284, SEC.2; Acts 1975, P.L.44, SEC.5.) As amended by
Acts 1977, P.L.293, SEC.1; Acts 1979, P.L.265, SEC.1; Acts 1982,
P.L.169, SEC.1; P.L.269-1983, SEC.1; P.L.141-1984, SEC.10;
P.L.2-1987, SEC.42; P.L.20-1990, SEC.11; P.L.8-1991, SEC.28;
P.L.42-1993, SEC.71; P.L.262-1995, SEC.64; P.L.194-1997, SEC.3;
P.L.79-1998, SEC.70; P.L.215-1999, SEC.6; P.L.235-2005,
SEC.204; P.L.2-2007, SEC.355; P.L.162-2007, SEC.39;
P.L.213-2007, SEC.57; P.L.217-2007, SEC.55.
IC 28-5-1-6.3
Request to exercise rights and privileges granted to national banks;
appeal
Sec. 6.3. (a) As used in this section, "rights and privileges" means
the power:
(1) to:
(A) create;
(B) deliver;
(C) acquire; or
(D) sell;
a product, a service, or an investment that is available to or
offered by; or
(2) to engage in mergers, consolidations, reorganizations, or
other activities or to exercise other powers authorized for;
national banks domiciled in Indiana.
(b) An industrial loan and investment company that intends to
exercise any rights and privileges that are:
(1) granted to national banks; but
(2) not authorized for industrial loan and investment companies
under the Indiana Code (except for this section) or any rule
adopted under the Indiana Code;
shall submit a letter to the department describing in detail the
requested rights and privileges granted to national banks that the
company intends to exercise. If available, copies of relevant federal
law, regulations, and interpretive letters must be attached to the letter
submitted by the company.
(c) The department shall promptly notify the requesting company
of the department's receipt of the letter submitted under subsection
(b). Except as provided in subsection (e), the company may exercise
the requested rights and privileges sixty (60) days after the date on
which the department receives the letter unless otherwise notified by
the department.
(d) The department may deny the requested rights and privileges
if the department finds that:
(1) national banks domiciled in Indiana do not possess the
requested rights and privileges;
(2) the exercise of the requested rights and privileges by the
company would adversely affect the safety and soundness of the
company;
(3) the exercise of the requested rights and privileges by the
company would result in an unacceptable curtailment of
consumer protection; or
(4) the failure of the department to approve the requested rights
and privileges will not result in a competitive disadvantage to
the company.
(e) The sixty (60) day period referred to in subsection (c) may be
extended by the department based on a determination that the
company's letter raised issues requiring additional information or
additional time for analysis. If the sixty (60) day period is extended
under this subsection, the company may exercise the requested rights
and privileges only if the company receives prior written approval
from the department. However:
(1) the department must:
(A) approve or deny the requested rights and privileges; or
(B) convene a hearing;
not later than sixty (60) days after the department receives the
company's letter; and
(2) if a hearing is convened, the department must approve or
deny the requested rights and privileges not later than sixty (60)
days after the hearing is concluded.
(f) The exercise of rights and privileges by a company in
compliance with and in the manner authorized by this section is not
a violation of any provision of the Indiana Code or rules adopted
under IC 4-22-2.
(g) If a company receives approval to exercise the requested rights
and privileges granted to national banks domiciled in Indiana, the
department shall determine by order whether all industrial loan and
investment companies may exercise the same rights and privileges.
In making the determination required by this subsection, the
department must ensure that the exercise of the rights and privileges
by all industrial loan and investment companies will not:
(1) adversely affect their safety and soundness; or
(2) unduly constrain Indiana consumer protection provisions.
(h) If the department denies the request of a company under this
section to exercise any rights and privileges that are granted to
national banks, the company may appeal the decision of the
department to the circuit court with jurisdiction in the county in
which the principal office of the company is located. In an appeal
under this section, the court shall determine the matter de novo.
As added by P.L.194-1997, SEC.4. Amended by P.L.213-2007,
SEC.58; P.L.217-2007, SEC.56; P.L.35-2010, SEC.143.
IC 28-5-1-6.5
Sale of annuity contracts
Sec. 6.5. (a) Notwithstanding any other provision of this title, an
industrial loan and investment company may act as an insurance
producer for the sale of any annuity contract issued by a life
insurance company (as defined in IC 27-1-2-3) authorized to do
business in Indiana under IC 27-1.
(b) An industrial loan and investment company that acts as an
insurance producer for the sale of an annuity contract:
(1) is subject to all requirements of IC 27 relating to the sale and
solicitation of insurance, including licensing as an insurance
producer under IC 27-1-15.6; and
(2) must comply with the disclosure requirements under
IC 27-1-38.
(c) This section does not give power to, or otherwise affect the
power of, an industrial loan and investment company to act as an
insurance producer for the sale of life insurance other than an annuity
contract.
As added by P.L.262-1995, SEC.65. Amended by P.L.132-2001,
SEC.20; P.L.130-2002, SEC.6; P.L.178-2003, SEC.91.
IC 28-5-1-7
Repealed
(Repealed by Acts 1971, P.L.366, SEC.10.)
IC 28-5-1-8
Limitation of total obligation of single borrower; exceptions; loans
to officers, agents, and employees; violation; offense
Sec. 8. (a) Except as otherwise provided in subsections (c), (d),
and (e), the total obligation of any person, firm, limited liability
company, or corporation to any industrial loan and investment
company shall at no time exceed fifteen percent (15%) of the amount
of the capital and surplus of the company.
(b) The term "obligations" as used in this section means the direct
liability of the maker or acceptor of paper discounted with or sold to
any such company, and the liability of the indorser, drawer or
guarantor who obtains a loan from, or discounts paper with or sells
paper under the person's guaranty to any such company, and, in the
case of obligations of a copartnership or association, includes only
those obligations of the several members thereof directly related to
the copartnership or association, and, in the case of obligations of a
corporation, includes all obligations of all subsidiaries thereof in
which such corporation owns or controls a majority interest.
(c) Subsection (a) does not apply to the following:
(1) Obligations arising out of the discount of commercial or
business paper actually owned by the person, firm, limited
liability company, or corporation negotiating such paper.
(2) Obligations of the United States or any instrumentality
thereof or of this state, or of any municipal corporation or taxing
district thereof, or obligations fully insured by the federal
housing administrator as to principal; however, the department
may, under such rules and regulations as it may prescribe, limit
the total amount that may be invested by any industrial loan and
investment company in any one (1) obligation or in any class of
obligations described in subdivisions (1) and (2).
(3) Obligations arising out of the agreement to repurchase, or
the guaranty or endorsement of, retail installment sales contracts
by a retail seller or subsequent assignee. However, this
subdivision does not apply in any case where such company
purchasing such paper does not become the absolute owner, or
in any case where installment payments are collected by a prior
owner of the paper, or by a retail seller of the goods represented
thereby.
(4) Obligations arising out of the agreement to repurchase, or
the guaranty or indorsement of, title-retaining real estate
installment sales contracts by a seller, or subsequent assignees;
however, this subdivision does not apply in any case where such
company purchasing such contracts does not become the
absolute owner, or in any case where installment payments are
collected by a prior owner of the contracts or by a seller of such
contracts.
(5) Obligations of the borrower arising out of loans in which the
borrower has no personal liability but which are secured by
bailment leases or the rentals due and to become due thereunder;
and the rights of the lessor in said leases and the property being
leased thereunder, and which loans are to be repaid out of said
rentals due and to become due under said leases; or obligations
arising out of the guaranty, endorsement, or assignment of
bailment leases or the rentals due and to become due thereunder
by the lessor. However, this subdivision does not apply in any
such case where such company does not have the right or does
not actually collect the rentals due or to become due thereunder.
(d) Obligations to an industrial loan and investment company of
any subsidiary or subsidiaries of the company engaged in business for
the purpose provided in section 6(a)(15) of this chapter shall at no
time exceed in the case of one (1) subsidiary ten percent (10%) of the
capital and surplus of the company or, in the case of more than one
(1) subsidiary, in the aggregate twenty percent (20%) of the capital
and surplus of the company unless in either case the department shall
approve a larger percentage.
(e) Obligations to an industrial loan and investment company of
any subsidiary or subsidiaries of the company engaged in business for
the purpose provided in section 6(a)(14) of this chapter shall at no
time exceed in the aggregate thirty percent (30%) of the amount of
the capital and surplus of the company or such larger sum as the
department may approve.
(f) Except as otherwise provided in this subsection and in section
9 of this chapter, no loan shall be made, directly or indirectly, by any
industrial loan and investment company, to any active executive
officer, agent, or employee thereof. The board of directors or
executive committee of any industrial loan and investment company
may, by resolution, duly entered in the records of the proceedings of
the board or committee, authorize loans to or extend lines of credit to:
(1) any active executive officer, agent, or employee of such
industrial loan and investment company in any amount not
exceeding, at any one (1) time outstanding:
(A) ten thousand dollars ($10,000); plus
(B) ten thousand dollars ($10,000) which may be used for
the sole purpose of educating the children of such active
executive officer, agent, or employee as hereinafter provided;
or
(2) directors not holding any office in such industrial loan and
investment company, and not acting as an agent or employee
thereof.
The board or committee may likewise authorize loans to or extend
lines of credit to firms, limited liability companies, or corporations in
which active executive officers, agents or employees or directors may
be partners, members, or stockholders, but the total amount of the
obligations of all such active executive officers, agents, or
employees, and directors, or other firms, limited liability companies,
or corporations in which such active executive officers, agents,
employees, and directors are partners, members, or stockholders,
shall not at any time exceed fifteen percent (15%) of the total
resources of the industrial loan and investment company at the time
any such loan or extension of credit is made. Loans and lines of credit
permitted by this subsection shall be made only on authorization by
a majority of all of the directors or members of the executive
committee of such industrial loan and investment company, and by
the affirmative vote of all directors or members of the executive
committee present at the meeting, and such authorization may be
general and need not be given for each loan or line of credit extended.
However, such general authorization shall be voted upon at least
annually. When a line of credit has been extended pursuant to this
subsection to any such active executive officer, agent, or employee
or to any such director, or to any firm, corporation, limited liability
company, or partnership in which an active executive officer, agent,
employee, or director may be a partner, member, or stockholder, any
notes or other instruments evidencing an indebtedness to the
industrial loan and investment company, and any renewals or
extensions thereof, need not be authorized as otherwise required by
this subsection if such loan, or any renewal or any extension thereof,
is within the terms of the authorization of the line of credit
theretofore extended by the directors or executive committee to such
active executive officer, agent, or employee, or to such director, or to
any firm, corporation, limited liability company, or partnership in
which any active executive officer, agent, employee, or director may
be a partner, member or stockholder. The department, under such
general rules and regulations as it may prescribe, which shall apply
to all industrial loan and investment companies alike, may require full
collateral security for all loans of the types permitted by this
subsection and, for the purpose of providing that such security may
be adequate, may specify the types thereof that may be pledged.
Subject to section 9 of this chapter, the limitations of this subsection
shall not apply to a loan by an industrial loan and investment
company to an active executive officer, agent, or employee thereof
made upon the security of real estate whereupon such active
executive officer, agent, or employee maintains the person's actual
residence. The term "actual residence" includes a two (2) family
dwelling unit if one (1) of such units is occupied by the active
executive officer, agent, or employee of the industrial loan and
investment company.
(g) An officer or director of any industrial loan and investment
company who knowingly violates subsection (f) commits a Level 4
felony.
(Formerly: Acts 1935, c.181, s.8; Acts 1937, c.105, s.4; Acts 1949,
c.229, s.1; Acts 1955, c.20, s.3; Acts 1969, c.129, s.2; Acts 1971,
P.L.399, SEC.3; Acts 1973, P.L.284, SEC.3.) As amended by Acts
1977, P.L.293, SEC.2; Acts 1979, P.L.265, SEC.2; P.L.8-1993,
SEC.448; P.L.213-2007, SEC.59; P.L.217-2007, SEC.57;
P.L.158-2013, SEC.300.
IC 28-5-1-9
Mortgage loans
Sec. 9. An industrial loan and investment company, hereinafter in
this section sometimes called "company" may, subject to the
requirements of this section, make or acquire a loan secured by a first
lien upon real estate (including a leasehold) located in any state or the
District of Columbia in an amount and for terms not to exceed (a) in
the case of improved real estate, including farmland, (i) three-fourths
(3/4) of the appraised value if the terms of the loan require
substantially equal payments at successive intervals of not more than
one (1) year each and if the terms of the loan are such as would
require the payment of forty percent (40%) of the principal of and all
interest on the loan within a period of ten (10) years or (ii)
nine-tenths (9/10) of the appraised value if the terms of the loan
require substantially equal payments at successive intervals of not
more than one (1) year each and if the terms of the loan are such as
would require the payment of all principal and interest on the loan
within a period of thirty (30) years, except that the date of the initial
payment of principal on a loan to a business borrower may be
deferred for a period of not to exceed three (3) years from the date of
the loan; or (b) in the case of unimproved real estate, one-half (1/2)
the appraised value for a term not to exceed five (5) years or
two-thirds (2/3) of the appraised value for a term not to exceed five
(5) years if utilities, roads, or streets necessary for the development
of such real estate have been completed. If the money borrowed on
real estate is to be used for erecting improvements, and if the money
is to be advanced as the work progresses, in such event, the appraised
value for purposes of the loan shall be based upon the condition of
the real estate when such improvements shall have been completed.
The department may by rule or regulation increase or decrease the
fraction of the appraised value which may be loaned with real estate
as security and may increase or decrease the terms for which such
loans may be made if the department finds that it is in the interest of
the economy of the state and in conformity with sound financial
practice.
In a case in which a loan subject to this section is made to finance
construction of an improvement and such loan is combined with a
permanent loan to continue after completion of construction, the term
of the construction loan or that portion of the term not in excess of
three (3) years, shall not be counted against the maximum term for
the permanent loan permitted under this section but such combined
construction loan and permanent loan shall be subject to all other
requirements of this section.
For the purpose of this section, a "leasehold" shall mean the
interest, which is security for a loan, of a lessee of real estate under
a lease which on the date of the loan has an unexpired term extending
at least five (5) years beyond the maturity of the loan, or contains a
right of renewal, which may be exercised by the mortgagee,
extending at least five (5) years beyond the maturity of the loan. The
requirements for a loan subject to this section shall be: (i) the loan
shall be evidenced by a bond, note, or other obligation and the lien
securing such loan shall be obtained by a mortgage, deed of trust, or
judgment; (ii) the lien shall be a first lien (except for a lien of taxes,
assessments, or charges which are not yet due or which are payable
without penalty) unless all prior liens are held by the company and
the aggregate of all loans by the company secured by liens on the real
estate satisfy all other requirements of this section pertaining to such
loans; (iii) insurance against loss from fire on all buildings on the real
estate which are included in the appraised value, issued by insurers
acceptable to the company and authorized to do business where the
real estate is located and in form and amount satisfactory to the
company, shall be maintained during the term of the loan by or at the
expense of the borrower, except that the company may at its own
expense maintain such insurance covering only its interest as lender;
and (iv) the borrower shall pay all expenses in connection with the
loan for title insurance, searches and certificates, appraisal fees and
fees for preparation and recording of documents.
The appraised value of the real estate offered for security shall be
determined by one (1) or more competent persons who shall report
such valuation in writing to such company. The written report so
made shall be signed and in the event that such company makes such
a loan, shall be kept on file by it subject to inspection by the
department.
The foregoing limitations and restrictions shall not apply to real
estate loans which are (1) mentioned in sections 6(a)(10), (11), and
(12) of this chapter and the regulations issued thereunder insofar as
said sections and regulations apply to loans on the security of real
estate; and (2) made under 38 U.S.C. 1801 through 1825 and the
regulations issued under that federal law, insofar as said federal law
and regulations apply to loans on the security of real estate, and under
such limitations and restrictions as the department may, by
regulation, prescribe.
The limitations set forth in this section shall not apply to
mortgages taken as additional security for loans otherwise authorized
by this chapter or as security for any loans which are in default or to
second mortgages. Loans made to businesses where the company
looks for repayment out of the operations of the borrower's business,
relying primarily on the borrower's general credit standing and
forecast of operations, with or without other security, but wishes to
take a mortgage on the borrower's real estate as a precaution against
contingencies, shall not be considered as real estate loans within the
meaning of this section and, therefore, shall not be subject to the
limitations of this section.
Any loan made upon the security of real estate which exceeds the
maximum fraction of the appraised value of such real estate will not
be in violation of this section so long as that portion of the loan in
excess of the maximum fraction of the appraised value of the real
estate is fully guaranteed or is fully secured by collateral consisting
of a savings deposit, certificate of deposit, certificates of indebtedness
or investment, assignment of rent, life insurance, or other collateral
security to which the company has ready access and a first claim.
Subject to the limitations and restrictions of this section, any
industrial loan and investment company, in addition to being
permitted to make loans as provided by this section, may purchase,
acquire, hold, and dispose of any loan, made to any other person,
firm, limited liability company, or corporation and the notes and
mortgages securing such loan. Before any such loan shall be
purchased by any industrial loan and investment company the real
estate securing such loan shall be appraised in the manner provided
by this section for appraisement of the real estate offered as security
for a loan to be made by such industrial loan and investment
company.
Subject to the limitations of this section relating to the fraction of
the appraised value which may be loaned on real estate as security,
a company may make variable rate mortgage loans and rollover
mortgage loans subject to the same limitations and rights provided
state chartered banks and federally chartered banks under
IC 28-1-13.5.
(Formerly: Acts 1935, c.181, s.9; Acts 1947, c.135, s.1; Acts 1955,
c.20, s.4; Acts 1971, P.L.399, SEC.4; Acts 1973, P.L.284, SEC.4.) As
amended by Acts 1979, P.L.265, SEC.3; Acts 1980, P.L.176, SEC.7;
P.L.8-1993, SEC.449; P.L.176-1996, SEC.17.
IC 28-5-1-10
Time for existing companies to comply with loan limits
Sec. 10. Except as otherwise provided in this chapter, any such
company which holds obligations of indebtedness in violation of the
limitations prescribed in this chapter shall, by July 1, 1938, cause the
amount of such obligations to conform to the limitations prescribed
in this chapter. The department may, in its discretion, extend the time
for effecting such conformity, in individual instances, if the interests
of the creditors will be protected and served by such extension. Upon
the failure of any such company to comply with such limitations, in
accordance with the terms of this section or in accordance with any
order of the department with relation to such limitations, the
department may declare that such company is conducting its business
in an unauthorized or unsafe manner and proceed in accordance with
IC 28-1-3.1-2.
(Formerly: Acts 1935, c.181, s.10.) As amended by P.L.263-1985,
SEC.152.
IC 28-5-1-11
Acquisition or conveyance of real estate; purposes
Sec. 11. (a) Any such company shall have the power to purchase,
hold and convey real estate for the following purposes and for no
others:
(1) Such as shall be necessary for the convenient transaction of
its business, but the cost or value of such real estate as carried
on its books shall not exceed fifty percent (50%) of the amount
of its capital and surplus, without the written consent of the
department.
(2) Such as shall be conveyed to it in satisfaction of debts or
obligations previously contracted in the course of its dealings,
or in exchange for real estate so conveyed to it.
(3) Such as it shall purchase at sales under judgments or decrees
of foreclosure on mortgages held by such company or shall
acquire as additional security for obligations due such company.
(4) Such as shall have been sold under a title-retaining,
installment, real estate sales contract, the term of which does not
exceed twelve (12) years, where such contract is either
purchased by it or taken as collateral security for a loan.
However, the total cost of all real estate sold on title-retaining
installment sales contracts as carried on the books of the
company shall not at any one (1) time exceed five percent (5%)
of the total resources of the company when such real estate
title-retaining installment sales contracts were acquired without
the written approval of the department.
(b) No such company shall hold the title or possession of any real
estate purchased or otherwise acquired to secure any debts or
obligations due to it, for a longer period than ten (10) years after such
real estate is or has been purchased or otherwise acquired without the
consent in writing of the department. However, any such company
may sell any real estate so purchased or otherwise acquired by it
under a title-retaining installment real estate sales contract, the term
of which shall not exceed twelve (12) years, and hold title or
possession thereof until the same is conveyed to the purchaser thereof
under the terms and provisions of any such contract.
(c) For the purposes of subsection (a)(1), real estate purchased or
held for the convenient transaction of the business of a company
includes the following:
(1) Real estate on which the principal office or a branch office
of the company is located.
(2) Real estate that is the location of facilities supporting the
operations of the company, such as parking facilities, data
processing centers, loan production offices, automated teller
machines, night depositories, facilities necessary for the
operations of a company subsidiary, or other facilities that are
approved by the director.
(3) Real estate that the board of directors of the company
expects, in good faith, to use as a company office or facility in
the future.
(d) If real estate referred to in subsection (c)(3) is held by a
company for one (1) year without being used as a company office or
facility, the board of directors of the company shall state, by
resolution, definite plans for the use of the real estate. A resolution
adopted under this subsection shall be made available for inspection
by the department.
(e) Real estate referred to in subsection (c)(3) may not be held by
a company for more than three (3) years without being used as a
company office or facility unless:
(1) the board of directors of the company, by resolution:
(A) reaffirms annually that the company expects to use the
real estate as a company office or facility in the future; and
(B) explains the reason why the real estate has not yet been
used as a company office or facility; and
(2) the director determines that:
(A) the continued holding of the real estate by the company
does not endanger the safety and soundness of the company;
and
(B) the company is holding the real estate to use the real
estate in the future for one (1) of the purposes set forth in
subsection (c)(1) and (c)(2).
(f) Real estate referred to in subsection (c)(3) may not be held by
a company for more than ten (10) years without being used as a
company office or facility unless the department consents in writing
to the continued holding of the real estate by the company.
(Formerly: Acts 1935, c.181, s.11; Acts 1947, c.135, s.2; Acts 1955,
c.20, s.5; Acts 1972, P.L.198, SEC.1.) As amended by P.L.14-1992,
SEC.112; P.L.213-2007, SEC.60; P.L.217-2007, SEC.58.
IC 28-5-1-12
Certificates of indebtedness or investment; form; payment;
withdrawals
Sec. 12. Any certificates of indebtedness or investment issued by
any such company pursuant to the provisions of this chapter may be
issued as fully paid or to be paid for in installments by the purchaser.
All of the terms and conditions upon which any such certificate of
indebtedness or investment is issued shall be clearly stated therein
and any such company may by contract provide that it shall not be
required to pay on such certificates of indebtedness or investment any
amount exceeding its net receipts of the previous calendar month, in
which event such certificates must be redeemed in the order in which
they are presented for redemption or as otherwise prescribed by
special regulation of the department.
(a) Fully paid certificates shall be payable at a date certain not less
than ninety (90) days subsequent to the date of issue thereof, except
that the company may pay such certificates prior to the maturity date
whenever its reserve balance equals or exceeds the amount provided
in section 13 of this chapter. Such company may at any time redeem
any of such certificates upon thirty (30) days notice in writing to the
holder thereof prior to such redemption. If such certificate is not
presented for payment by the holder thereof at maturity, such
certificate shall be payable thereafter only upon at least thirty (30)
days notice in writing given by the holder thereof to the company
issuing the same, except that any such company may waive such
notice whenever its reserve balance equals or exceeds the amount
provided in section 13 of this chapter.
(b) Installment certificates shall be payable only after ninety (90)
days notice in writing given by the holder of the certificate to the
company issuing the same, except that any such company may waive
the notice whenever its reserve balance equals or exceeds the amount
provided in section 13 of this chapter. The company may at any time
redeem any of the certificates upon thirty (30) days notice in writing
to the holder of the certificate prior to such redemption.
(c) Subject to subsection (b), a company may permit the holder of
any installment certificate of indebtedness or investment to make
withdrawals from the certificate by negotiable or transferable
instruments or orders, if the certificate is held by the type or category
of holder permitted to hold a similar account with a financial
institution controlled under 12 U.S.C. 3502.
(d) A company may require the owner of any installment
certificate of indebtedness or investment which is subject to
withdrawal by negotiable or transferable instruments or orders to
maintain a minimum balance in that certificate of indebtedness or
investment and may charge fees that are reasonable and competitive
if the balance in the certificate of indebtedness or investment falls
below a minimum required balance. Interest paid on certificates of
investment or indebtedness subject to withdrawal by negotiable or
transferable instruments or orders may not exceed the maximum rate
allowable for those financial institutions whose interest rates are
controlled under 12 U.S.C. 3502.
(Formerly: Acts 1935, c.181, s.12.) As amended by Acts 1980,
P.L.177, SEC.1; Acts 1981, P.L.258, SEC.1; P.L.269-1983, SEC.2;
P.L.269-1985, SEC.2.
IC 28-5-1-13
Certificates of indebtedness or investment; reserve balance
Sec. 13. Every company issuing any such certificates of
indebtedness or investment shall at all times maintain a reserve
balance equal to at least three percent (3%) of the total amount paid
in on all of its outstanding certificates of indebtedness or investment,
which said reserve balance shall consist of cash on hand or on
demand deposit with a solvent and going bank or trust company. If
at any time such reserve balance shall be reduced below the amount
herein prescribed, such company shall not issue any additional
certificates of indebtedness or investment nor make any new loans or
pay any dividends until such reserve balance shall have been fully
restored to the amount herein prescribed. All of the officers and such
of the directors as participate in violating any of the provisions of this
section shall be jointly and severally liable to the holder or holders of
any certificates of indebtedness or investment issued when such
reserve balance is below the amount herein prescribed for any loss
suffered or sustained by them accruing by reason of such violation.
Any such company which maintains federal deposit insurance as
authorized in section 6(a)(17) of this chapter and which maintains the
reserves required by the Federal Reserve Act shall be considered to
have complied fully with this section.
(Formerly: Acts 1935, c.181, s.13; Acts 1947, c.135, s.3; Acts 1955,
c.20, s.6; Acts 1971, P.L.399, SEC.5.) As amended by P.L.269-1983,
SEC.3.
IC 28-5-1-14
Surplus account; dividends
Sec. 14. Every such company shall on June 30 and December 31
of each year, and before the payment of any dividends on its
outstanding stock, transfer to its surplus account a credit equal to five
per cent (5%) of the net earnings of such company for the preceding
six (6) months and shall accumulate such surplus account until the
unimpaired amount thereof equals the amount of the capital stock of
such company. No such company shall declare or pay dividends upon
its stock in any form unless its capital is unimpaired and unless a
surplus fund equal to twenty-five per cent (25%) of its capital has
been accumulated and is maintained unimpaired. Thereafter any such
company may annually or semiannually, but not more frequently
declare and pay a dividend of so much of its net earnings as may be
deemed expedient, but the rate of such dividend shall not exceed the
rate of six per cent (6%) per annum upon the book value of its shares,
as determined by the department, until the unimpaired surplus fund
of the company is equal to the amount of its unimpaired capital stock.
(Formerly: Acts 1935, c.181, s.14.)
IC 28-5-1-15
Authority of department; examination of affiliates; examination of
vendors
Sec. 15. (a) The department shall have charge of the organization,
supervision, regulation, examination, and liquidation of all industrial
loan and investment companies to which this chapter is applicable, to
the same extent and in the same manner as is provided for financial
institutions in IC 28-1 and IC 28-11, and for such purpose any
company to which this chapter is applicable shall be deemed to be
and shall be a financial institution within the meaning of the term as
used in IC 28-1-2, IC 28-1-3.1, and IC 28-11. The department shall
be subject to the same limitations with reference to the disclosure of
information as is provided in IC 28-11-3-3.
(b) In conducting an examination of an industrial loan and
investment company, the department shall include an examination of
the affairs of all the industrial loan and investment company's
affiliates necessary to disclose fully:
(1) the relations between the industrial loan and investment
company and its affiliates; and
(2) the effect of the relations described in subdivision (1) upon
the affairs of the industrial loan and investment company.
In conducting the examination of an affiliate of an industrial loan and
investment company, the department has the same powers to examine
the affiliate as the department has to examine the affairs of the
industrial loan and investment company under this section.
(c) If an industrial loan and investment company contracts with an
outside vendor to provide a service that would otherwise be
undertaken internally by the industrial loan and investment company
and be subject to the department's routine examination procedures,
the person that provides the service to the industrial loan and
investment company 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
industrial loan and investment company 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.
(Formerly: Acts 1935, c.181, s.15.) As amended by P.L.263-1985,
SEC.153; P.L.33-1991, SEC.47; P.L.213-2007, SEC.61;
P.L.217-2007, SEC.59; P.L.35-2010, SEC.144.
IC 28-5-1-16
Records retention policy
Sec. 16. (a) The board of directors shall develop a records
retention policy. In developing the policy, the board of directors shall
consider:
(1) legal actions and administrative proceedings in which the
production of company records is necessary or desirable;
(2) state and federal statutes of limitation applicable to legal
actions and administrative proceedings; and
(3) the availability of information contained in the company
records from other sources.
(b) Except for records that must be permanently retained, a
company may dispose of a record that has been retained for the
period required and in the manner required by the records retention
policy. A company is not under a duty to produce the record in an
action or proceeding after the disposal of the record.
(c) The department may require each such company to prepare and
submit such reports of condition as are deemed necessary in any year,
and if the department so orders, any such company shall publish such
statement of condition in the manner and form prescribed by the
department.
(Formerly: Acts 1935, c.181, s.16.) As amended by P.L.263-1985,
SEC.154; P.L.11-1998, SEC.10.
IC 28-5-1-17
Rules and regulations
Sec. 17. The department may by a majority vote of the members
of the commission promulgate rules and regulations for any of the
following purposes:
(1) Prescribing the methods and standards to be used in making
the examinations and evaluating the assets and prescribing the
forms of reports of any company to which this act is applicable.
(2) Defining what is a safe or an unsafe manner and a safe or
unsafe condition for conducting and transacting business by any
company to which this chapter is applicable.
(3) For the establishment of safe and sound methods for the
transaction of business by any such company and for
safeguarding the interests of creditors and shareholders thereof
and, subject to section 6(a)(1) and (c) of this chapter, the rate of
interest paid or to be paid, or service charges to be collected by
any such company upon its certificates of investment or other
evidences of indebtedness issued by it.
(4) For the administration and termination of the affairs of any
such company which is in voluntary or involuntary liquidation
or whose business and property have been taken possession of
by the department pursuant to IC 28-1. And the department may
take possession of the business and property of any such
company in the same manner and reorganize or liquidate the
same under the conditions with reference to other financial
institutions as prescribed in IC 28-1.
(Formerly: Acts 1935, c.181, s.17; Acts 1937, c.105, s.5; Acts 1949,
c.229, s.2.) As amended by Acts 1978, P.L.2, SEC.2817; Acts 1982,
P.L.169, SEC.2.
IC 28-5-1-18
Fidelity coverage for officers and employees; bonds; reserve funds
Sec. 18. Every company shall make provision for adequate fidelity
coverage for all officers and employees having access to money or
bonds of the company. The amount and form of fidelity coverage
must be approved by the board of directors of the company. Coverage
may be provided:
(1) in the form of a blanket fidelity bond issued by a corporate
surety authorized to transact business in Indiana; or
(2) through the establishment of a separate reserve fund within
the company for that purpose.
(Formerly: Acts 1935, c.181, s.18.) As amended by P.L.276-1987,
SEC.2.
IC 28-5-1-19
Exclusion from banking business; false advertising; desist orders
Sec. 19. A company may not engage in the banking or trust
business, operate a savings bank, commercial bank or trust company,
advertise or hold itself out to the public as a bank, savings bank or
trust company, or use the word "bank" in connection with its name or
business in any of its advertising or literature. A company may not
accept deposits or "savings accounts" or advertise or hold itself out
to the public as accepting deposits of money or "savings accounts",
unless the company maintains federal deposit insurance, as
authorized by section 6(a)(16) of this chapter. A company may not
advertise, print, display, publish, distribute, or broadcast or cause or
permit to be advertised, printed, displayed, published, distributed, or
broadcast, in any manner whatsoever, any statement or representation
with regard to the rates, terms, or conditions for the lending of
money, credit, goods, or things in action which is false, misleading,
or calculated to deceive. If any company refers in any advertising
matter to the rate of charge upon loans to be made by it, the
department may require such company to state such rate of charge
fully and clearly in such manner as it may deem necessary to prevent
misunderstanding thereof by prospective borrowers. The department
may order any company to desist from any conduct which it shall
find to be a violation of this section.
(Formerly: Acts 1935, c.181, s.19.) As amended by P.L.269-1983,
SEC.4; P.L.90-2008, SEC.37.
IC 28-5-1-20
Repealed
(Repealed by Acts 1971, P.L.366, SEC.10.)
IC 28-5-1-21
Elimination of certificates of indebtedness or certificates of
investment, deposits, or savings accounts
Sec. 21. Companies that do not have any certificates of
indebtedness, certificates of investment, deposits, or savings accounts
outstanding shall not be subject to the provisions of sections 5, 8
through 14, and 18 of this chapter. After February 27, 1951, no
company engaged in business on February 27, 1951, under this
chapter as permitted by this section, and no company authorized after
February 27, 1951, to engage in business under this chapter, shall at
any time thereafter be empowered and authorized to issue, negotiate,
or sell, or shall issue, negotiate, or sell certificates of investment or
indebtedness. These restrictions shall not limit the power of such
corporations otherwise to borrow money commercially or to issue
and sell their capital stock.
(Formerly: Acts 1935, c.181, s.20a; Acts 1951, c.79, s.2.) As
amended by P.L.263-1985, SEC.155; P.L.176-1996, SEC.18.
IC 28-5-1-22
Violations
Sec. 22. A person who violates a provision of this chapter for
which there is no other penalty provided commits a Class C
infraction.
(Formerly: Acts 1935, c.181, s.21.) As amended by Acts 1978, P.L.2,
SEC.2818.
IC 28-5-1-22.1
Prohibited transactions
Sec. 22.1. An industrial loan and investment company is
prohibited from entering into any transaction that would be
prohibited for a bank under IC 28-1-18.2.
As added by P.L.192-1997, SEC.12.
IC 28-5-1-23
Taxation
Sec. 23. All industrial loan and investment companies subject to
the provisions of this chapter shall be taxed in the same manner as
banks and trust companies are taxed under IC 6-5.5.
(Formerly: Acts 1935, c.181, s.21a; Acts 1969, c.129, s.3.) As
amended by P.L.263-1985, SEC.156; P.L.347-1989(ss), SEC.22.
IC 28-5-1-24
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2824.)
IC 28-5-1-25
Conversion into state bank, trust company, or savings association
Sec. 25. (a) Any industrial loan and investment company
organized under this chapter may, upon approval of the department,
convert into a state bank or trust company or a savings association.
(b) The department shall prescribe the procedure for conversion
under this section. The department shall prescribe a procedure that
includes the following conditions:
(1) The conversion must be proposed by the board of directors
of the industrial loan and investment company in a resolution of
conversion.
(2) The resolution of conversion must be adopted by an
affirmative vote of at least two-thirds (2/3) of the shareholders
of the industrial loan and investment company.
(3) The industrial loan and investment company must provide
all relevant information requested by the department in
connection with the conversion.
(c) Upon conversion, an industrial loan and investment company
has all the rights, privileges, immunities, and powers, and is subject
to all the duties, restrictions, penalties, and liabilities of a bank or
trust company organized under IC 28-1 or a savings association
organized under IC 28-4 (before its repeal) or under IC 28-15.
As added by P.L.164-1988, SEC.10. Amended by P.L.79-1998,
SEC.71.
IC 28-5-1-26
Requirement to provide property tax information in certain
transactions
Sec. 26. With respect to a residential real property financing or
refinancing, an industrial loan and investment company shall comply
with IC 6-1.1-12-43.
As added by P.L.64-2004, SEC.30.
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