MR. PRESIDENT:
The Senate Committee on Insurance and Financial Institutions, to which was referred
Senate Bill No. 478, has had the same under consideration and begs leave to report the same
back to the Senate with the recommendation that said bill be AMENDED as follows:
SOURCE: Page 1, line 1; (03)CR047802.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert the following:
SOURCE: IC 23-2-5-10; (03)CR047802.1. -->
"SECTION 1.
IC 23-2-5-10
, AS AMENDED BY P.L.14-2000,
SECTION 53, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 10. (a) Whenever it appears to the
commissioner that a person has engaged in or is about to engage in
an act or a practice constituting a violation of this chapter or a rule
adopted or an order issued under this chapter, the commissioner
may investigate and may issue:
(1) with a prior hearing if there exists no substantial threat of
immediate irreparable harm; or
(2) without a prior hearing if there exists a substantial threat
of immediate irreparable harm;
orders and notices the commissioner determines to be in the public
interest, including cease and desist orders, orders to show cause,
and notices. After notice and hearing, the commissioner may enter
an order of rescission, restitution, or disgorgement, including
interest at the rate of eight percent (8%) per year, directed to a
person who has violated this chapter or a rule or order under this
chapter.
(b) Upon the issuance of an order or notice without a prior
hearing by the commissioner under subsection (a)(2), the
commissioner shall promptly notify the respondent:
(1) that the order or notice has been issued;
(2) of the reasons the order or notice has been issued; and
(3) that upon the receipt of a written request the matter will
be set down for a hearing to commence within forty-five (45)
business days after receipt of the request unless the
respondent consents to a later date.
If a hearing is not requested and not ordered by the commissioner,
an order remains in effect until it is modified or vacated by the
commissioner. If a hearing is requested or ordered, the
commissioner, after notice of an opportunity for hearing, may
modify or vacate the order or extend it until final determination.
(c) The commissioner may deny, suspend, or revoke the license of
a licensee or the registration of a registrant if the licensee or the
registrant:
(1) fails to maintain the bond required under section 5 of this
chapter;
(2) is insolvent;
(3) has violated any provision of this chapter;
(4) has knowingly filed with the commissioner any document or
statement containing any false representation of a material fact or
omitting to state a material fact or if a representation becomes
false after the filing but during the term of a license or certificate
of registration as provided in subsection (e); (g); or
(5) has been convicted, within ten (10) years before the date of the
application, renewal, or review, of any crime involving fraud or
deceit.
(b) (d) The commissioner may not enter a final order denying,
suspending, or revoking the license of a licensee or the registration of
a registrant without prior notice to all interested parties, opportunity for
a hearing, and written findings of fact and conclusions of law.
However, the commissioner may by summary order deny, suspend, or
revoke a license or certificate of registration pending final
determination of any proceeding under this section. Upon the entry of
a summary order, the commissioner shall promptly notify all interested
parties that it has been entered, of the reasons for the summary order,
and that upon receipt by the commissioner of a written request from a
party, the matter will be set for hearing to commence within fifteen
(15) business days after receipt of the request. If no hearing is
requested and none is ordered by the commissioner, the order remains
in effect until it is modified or vacated by the commissioner. If a
hearing is requested or ordered, the commissioner, after notice of the
hearing has been given to all interested persons and the hearing has
been held, may modify or vacate the order or extend it until final
determination.
(c) (e) IC 4-21.5 does not apply to a proceeding under this section.
(d) (f) If:
(1) a licensee desires to have a previously unregistered employee
begin engaging in origination activities; or
(2) an individual who was previously registered under this chapter
is employed by another licensee who desires to have the registrant
engage in origination activities;
the employer licensee shall, within fifteen (15) days after the employee
first conducts origination activities, submit to the commissioner, on a
form prescribed by the commissioner, notice of the registrant's
employment. If the employee has not previously been registered, the
licensee shall submit evidence that the employee has completed the
education requirements of section 21 of this chapter.
(e) (g) If a material fact or statement included in an application
under this chapter changes after the application has been submitted, the
applicant shall provide written notice to the commissioner of the
change. The commissioner may revoke or refuse to renew the license
or registration of any person who:
(1) is required to submit a written notice under this subsection
and fails to provide the required notice within two (2) business
days after the person discovers or should have discovered the
change; or
(2) would not qualify for licensure or registration under this
chapter as a result of a change in material fact or statement.".
SOURCE: Page 4, line 5; (03)CR047802.4. -->
Page 4, between lines 5 and 6, begin a new line double block
indented and insert:
" (D) A prepayment fee or penalty may not exceed two
percent (2%) of the net unpaid balance as of the date of the
prepayment.".
Page 4, line 20, after "credit" insert " history".
by the lender.".
Page 7, line 5, delete "(k)" and insert " (m)".
Page 7, line 5, after "knowingly" insert " and intentionally".
Page 7, line 24, delete "one (1) year" and insert " two (2) years".
Page 7, line 25, delete "It is the intent of the general assembly that
persons".
Page 7, delete lines 26 through 30.
Page 7, line 39, delete "fraud" and insert " violations of this article".
Page 7, line 40, delete "lending." and insert " loans that are covered
under this article and mortgage loans that are not covered under
this article.".
Page 7, line 42, delete "fraud" and insert " violations of this article".
Page 7, line 42, delete "lending." and insert " loans that are covered
under this article and mortgage loans that are not covered under
this article.".
Page 8, line 2, delete "fraud" and insert " violations of this article".
Page 8, line 3, delete "lending." and insert " loans that are covered
under this article and mortgage loans that are not covered under
this article.".
Page 8, line 5, delete "fraud" and insert " violations of this article".
Page 8, line 6, delete "lending." and insert " loans that are covered
under this article and mortgage loans that are not covered under
this article.".
Page 8, line 26, delete "fraud" and insert " violations of this article".
Page 9, between lines 1 and 2, begin a new paragraph and insert:
" Sec. 5. The attorney general may bring an action to enjoin a
violation of this article. A court in which the action is brought may:
(1) issue an injunction;
(2) order a person to make restitution;
(3) void or limit the application of obligations that violate this
article;
(4) order a person to reimburse the state for reasonable costs
of the attorney general's investigation and prosecution of the
violation of this article; and
(5) impose a civil penalty of not more than fifteen thousand
dollars ($15,000) per violation.
Sec. 6. (a) A person who violates an injunction issued under
section 5 of this chapter must pay a civil penalty of not more than
fifteen thousand dollars ($15,000) per violation.
(b) The court that issues an injunction under section 5 of this
chapter retains jurisdiction over a proceeding seeking imposition
of a civil penalty under this section.
(c) The attorney general, acting in the name of the state, has the
exclusive right to petition for imposition of a civil penalty under
this section.
(d) If a court determines that a person:
(1) has violated an injunction issued under section 5 of this
chapter; and
(2) must pay a civil penalty;
the court shall also require the person to reimburse the state for
reasonable costs related to bringing an action under this section.".
Page 9, line 2, delete "5." and insert " 7.".
Page 9, line 29, after "department" insert " of financial institutions".
Page 10, line 6, delete "is credited to the" and insert " shall be
distributed as follows:
(1) Fifty percent (50%) to the attorney general for use in
mortgage fraud enforcement under section 3 of this chapter.
(2) Fifty percent (50%) to the department of education for
financial literacy training and programs under section 2 of
this chapter.".
Page 10, delete lines 7 through 15.
Page 10, line 16, before "department" begin a new paragraph and
insert:
" Sec. 2. The fee allocation under section 1(2) of this chapter shall
be distributed on a quarterly basis to the".
Page 10, line 19, delete "budgeting, insurance, investing, managing
credit, financial" and insert " home buying and mortgage lending.".
Page 10, delete lines 20 through 22.
Page 10, line 23, before "mortgage" begin a new paragraph and
insert:
" Sec. 3. The fee allocation under section 1(1) of this chapter shall
be distributed on a quarterly basis to the".
Page 10, between lines 24 and 25, begin a new paragraph and insert:
" Sec. 4. (a) An allocation of seventy-five thousand dollars
($75,000) consisting of the increased fees under this chapter shall
be made to the legislative services agency before any fee revenue
may be allocated to the mortgage fraud unit of the attorney
general's office or the department of education. The seventy-five
thousand dollar ($75,000) allocation shall be used to contract with
the Kelly School of Business at Indiana University to conduct a
study of the causes of the high rate of foreclosure in Indiana during
2001 and 2002.
(b) The results of the study shall be reported in writing to the
legislative services agency not later than December 31, 2004. The
legislative services agency shall distribute the report to the
legislative council, the department of financial institutions, and the
attorney general.".
Renumber all SECTIONS consecutively.
(Reference is to SB 478 as introduced.)
and when so amended that said bill do pass.
Committee Vote: Yeas 9, Nays 0.
Paul
CR047802/DI 105 2003