2018 Indiana Code
TITLE 23. Business and other Associations
ARTICLE 2. SECURITIES AND FRANCHISES
CHAPTER 5. Loan Brokers
23-2-5-9.1. Real estate appraisals; improper influence; ownership interest in appraisal company
Sec. 9.1. (a) As used in this section, "appraisal company" means a business entity that:
(1) performs real estate appraisals on a regular basis for compensation through one (1) or more owners, officers, employees, or agents; or
(2) holds itself out to the public as performing real estate appraisals.
(b) As used in this section, "immediate family", with respect to an individual, refers to:
(1) the individual's spouse who resides in the individual's household; and
(2) any dependent child of the individual.
(c) As used in this section, "real estate appraiser" means a person who:
(1) is licensed as a real estate broker under IC 25-34.1 and performs real estate appraisals within the scope of the person's license;
(2) holds a real estate appraiser license or certificate issued under IC 25-34.1-3-8; or
(3) otherwise performs real estate appraisals in Indiana.
(d) A person licensed under this chapter, or a person required to be licensed under this chapter, shall not knowingly bribe, coerce, or intimidate another person to corrupt or improperly influence the independent judgment of a real estate appraiser with respect to the value of any real estate offered as security for a residential mortgage loan.
(e) Except as provided in subsection (f):
(1) a person licensed under this chapter, or a person required to be licensed under this chapter;
(2) a member of the immediate family of:
(A) a person licensed under this chapter; or
(B) a person required to be licensed under this chapter; or
(3) a person described in subdivision (1) or (2) in combination with one (1) or more other persons described in subdivision (1) or (2);
may not own or control a majority interest in an appraisal company.
(f) This subsection applies to a person or combination of persons described in subsection (e) who own or control a majority interest in an appraisal company on June 30, 2007. The prohibition set forth in subsection (e) does not apply to a person or combination of persons described in this subsection, subject to the following:
(1) The interest in the appraisal company owned or controlled by the person or combination of persons described in subsection (e) shall not be increased after June 30, 2007.
(2) The interest of a person licensed under this chapter, or of a person required to be licensed under this chapter, shall not be transferred to a member of the person's immediate family.
(3) If the commissioner determines that any person or combination of persons described in subsection (e) has violated this chapter, the commissioner may order one (1) or more of the persons to divest their interest in the appraisal company. The commissioner may exercise the remedy provided by this subdivision in addition to, or as a substitute for, any other remedy available to the commissioner under this chapter.
As added by P.L.230-2007, SEC.10. Amended by P.L.156-2009, SEC.7.
