Reprinted
March 4, 2003
HOUSE BILL No. 1654
_____
DIGEST OF HB 1654
(Updated March 3, 2003 7:26 PM - DI 92)
Citations Affected: IC 28-5; IC 28-8.
Synopsis: Financial institutions. Revises definitions in financial
institutions law. Provides for the release of information to state and
federal supervisory agencies, federal law enforcement agencies, and
federal prosecutorial agencies or offices.
Effective: July 1, 2003.
Bardon
, Burton
January 21, 2003, read first time and referred to Committee on Financial Institutions.
February 17, 2003, reported _ Do Pass.
March 3, 2003, read second time, amended, ordered engrossed.
Reprinted
March 4, 2003
First Regular Session 113th General Assembly (2003)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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HOUSE BILL No. 1654
A BILL FOR AN ACT to amend the Indiana Code concerning
financial institutions.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 28-5-1-3; (03)HB1654.2.1. -->
SECTION 1. IC 28-5-1-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 3. As used in this chapter and
unless a different meaning appears from the context:
(a) The term "company"
shall mean and include means any
corporation to which this chapter is applicable.
(b) The term "department" means the department of financial
institutions of the state of Indiana.
(c) The term "sound capital" means and includes the paid-in and
unimpaired capital, the unimpaired surplus, and the unimpaired
proceeds of the capital and investment notes and capital debentures of
any company which have been issued under the authority and with the
approval in writing of the department together with all accrued and
unpaid interest on said capital and investment notes and capital
debentures which by the terms thereof is payable:
(i) at maturity;
(ii) after a one year notice in writing given by the holder to the
company, except that any such company may waive such notice
whenever its reserve balance exceeds the amount provided in
section 13 of this chapter; or
(iii) at a fixed or determinable date or dates, which fixed or
determinable date or dates are at intervals of not less than four (4)
years.
The department is hereby authorized to approve the issue of capital and
investment notes and capital debentures by any company to create
sound capital, 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.
SOURCE: IC 28-8-1-1; (03)HB1654.2.2. -->
SECTION 2. IC 28-8-1-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 1. For the purposes of this chapter:
(a) "Department" shall mean means the department of financial
institutions for the state of Indiana.
(b) "Bank services" shall mean means check and deposit sorting and
posting, computation and posting of interest and other credits and
charges, preparation and mailing of checks, statements, notices, and
similar items, or any other clerical, bookkeeping, accounting,
statistical, or similar functions performed for a bank or trust company.
(c) "Bank service corporation" shall mean means a corporation
organized to perform bank services for two or more banks or trust
companies, each of which owns a portion of the capital stock of such
corporation.
(d) "Invest" shall include any advance of funds to a bank service
corporation, whether by the purchase of stock, the making of a loan or
loans, or otherwise; provided, however, payment for rent earned, goods
sold and delivered, or services rendered prior to the making of such
payment shall not be deemed an investment.
SOURCE: IC 28-8-4-47; (03)HB1654.2.3. -->
SECTION 3. IC 28-8-4-47 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 47. (a) Notwithstanding
any other provision of law, all information or reports obtained by the
director from an applicant, a licensee, or an authorized delegate,
whether obtained through reports, applications, examination, audits,
investigation, or otherwise, including but not limited to:
(1) all information contained in or related to:
(A) examination;
(B) investigation;
(C) operation; or
(D) condition reports prepared by, on behalf of, or for the use
of the director; or
(2) financial statements, balance sheets, or authorized delegate
information;
are confidential and may not be disclosed or distributed outside the
department by the director or any officer or employee of the
department, except as provided in subsection (b).
(b) The director may provide for the release of information to
representatives of state or federal:
(1) financial institution supervisory agencies;
(2) law enforcement agencies; or
(3) prosecutorial agencies or offices;
who state in writing under oath that
they shall are required to
maintain the confidentiality of the information
if: as described in
IC 28-1-2-30.
(1) the licensee provides consent before the release; or
(2) the director finds that the release is reasonably necessary for
the protection of the public and in the interests of justice, and the
licensee has been given prior notice by the director to release the
information.
(c) Nothing in this section shall prohibit the director from releasing
to the public a list of persons licensed under this chapter or from
releasing aggregated financial data on such licensees.