Your Committee on Financial Institutions , to which was referred House Bill
1834 , has had the same under consideration and begs leave to report the same back to the
House with the recommendation that said bill be amended as follows:
SOURCE: Page 5, line 12; (03)AM183401.5. -->
Page 5, between lines 12 and 13, begin a new paragraph and insert:
SOURCE: IC 28-6.1-8-8; (03)AM183401.7. -->
"SECTION 7. IC 28-6.1-8-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. Subject to any
limitations imposed by the department through policy, a
bank may do any of the following:
(1) Invest the money deposited in the savings bank in the shares
of the capital stock, bonds, debentures, notes, or other obligations
of a federal home loan bank of the United States.
(2) Become a member of the federal home loan bank of this or an
(3) Borrow money from:
(A) a bank described in subdivision (2);
(B) the Federal Deposit Insurance Corporation; or
(C) any other corporation.
(4) Transfer, assign to, and pledge with a bank described in
subdivision (2), the Federal Deposit Insurance Corporation, or
other corporation, any of the bonds, notes, contracts, mortgages,
securities, or other property of the savings bank held or acquired,
as security for the payment of loans entered into under
(5) Exercise all rights, powers, and privileges conferred upon, and
to do all things and perform all acts required of, members or
shareholders of a federal home loan bank by the Federal Home
Loan Bank Act (12 U.S.C. 1421 through 1449).".
SOURCE: Page 14, line 27; (03)AM183401.14. -->
Page 14, line 27, delete "public".
Page 15, between lines 33 and 34, begin a new paragraph and insert:
SOURCE: IC 28-11-4-5; (03)AM183401.19. -->
"SECTION 19. IC 28-11-4-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. If the department
enters into a consent to a final order under section 7 of this chapter with
a financial institution, director,
or officer, or employee, the director is
not required to issue and serve a notice of charges upon the financial
institution, director, or officer under section 2 or 3 of this chapter. A
consent agreement may be negotiated and entered into before or after
the issuance of a notice of charges.
SOURCE: IC; (03)AM183401.20. -->
SECTION 20. IC 28-11-4-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. (a) If the department
determines that an alleged practice, a violation, or an act specified in
a notice served under this chapter is likely to:
(1) cause insolvency of the financial institution;
(2) cause substantial dissipation of assets or earnings of the
financial institution; or
(3) otherwise seriously prejudice the interests of the depositors of
the financial institution;
the department may issue a temporary order without a hearing.
(b) A temporary order may
(1) require the financial institution to cease and desist from the
practice or violation. or
(2) temporarily remove a director or an officer of the financial
(c) A temporary order is effective upon service and remains
effective and enforceable until the earliest of the following:
(1) The issuance of an injunction by a court under subsection (d).
(2) The dismissal of the charges by the department.
(3) The effective date of a final order under section 7 of this
(d) A financial institution
a director, or an officer served with a
temporary order under this section may apply to a court having
jurisdiction for an injunction to stay, modify, or vacate the order.".
SOURCE: Page 16, line 15; (03)AM183401.16. -->
Page 16, line 15, after "cause shown." insert " A final order issued
under this chapter may be made public by the department.
Page 17, line 16, delete "company" and insert " company, savings
bank, or savings association
Page 17, line 18, delete "company or savings bank." and insert
" company, savings bank, or savings association.
Page 17, line 19, delete "company" and insert " company, savings
bank, or savings association
Page 17, line 20, after "protection of" insert " the depositors of
Page 17, line 21, strike "company's depositors," and insert
" company, savings bank, or savings association,
Renumber all SECTIONS consecutively.
(Reference is to HB 1834 as introduced.)
and when so amended that said bill do pass.
AM183401/DI 108 2003