HB 1179-1_ Filed 04/05/2005, 08:52
The Senate Committee on Insurance and Financial Institutions, to which was referred
House Bill No. 1179, 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 3, line 5; (05)CR117902.3. -->
Page 3, between lines 5 and 6, begin a new paragraph and insert:
SOURCE: IC 24-9-2-9; (05)CR117902.4. -->
"SECTION 4. IC 24-9-2-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 9. "Home loan" means
a loan, other than an open end credit plan,
or a reverse mortgage
transaction, or a loan described in IC 24-9-1-1, that is secured by a
mortgage or deed of trust on real estate in Indiana on which there is
located or will be located a structure or structures:
(1) designed primarily for occupancy of one (1) to four (4)
(2) that is or will be occupied by a borrower as the borrower's
SOURCE: IC 24-9-3-7; (05)CR117902.5. -->
SECTION 5. IC 24-9-3-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. A person may not:
(1) divide a loan transaction into separate parts with the intent of
evading a provision of this article;
(2) structure a home loan transaction as an open-end loan with the
intent of evading the provisions of this article if the loan would be
a high cost home loan if the home loan had been structured as a
closed-end loan; or
(3) engage in a deceptive act in connection with a:
(A) home loan; or
(B) loan described in IC 24-9-1-1.
SOURCE: IC 24-9-5-1; (05)CR117902.6. -->
SECTION 6. IC 24-9-5-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1. (a) A person who
purchases or is otherwise assigned a high cost home loan is subject to
all affirmative claims and any defenses, except for an affirmative
claim or defense pursuant to IC 24-9-3-7, with respect to the high
cost home loan that the borrower could assert against a creditor or
broker of the high cost home loan. However, this section does not apply
if the purchaser or assignee demonstrates by a preponderance of the
evidence that a reasonable person exercising ordinary due diligence
could not determine that the loan was a high cost home loan. A
purchaser or an assignee is presumed to have exercised reasonable due
diligence if the purchaser or assignee:
(1) has in place at the time of the purchase or assignment of the
subject loans, policies that expressly prohibit the purchase or
acceptance of the assignment of any high cost home loans;
(2) requires by contract that a seller or an assignor of home loans
to the purchaser or assignee represents and warrants to the
purchaser or assignee that either:
(A) the seller or assignor will not sell or reassign any high cost
home loans to the purchaser or assignee; or
(B) the seller or assignor is a beneficiary of a representation
and warranty from a previous seller or assignor to that effect;
(3) exercises reasonable due diligence:
(A) at the time of purchase or assignment of home loans; or
(B) within a reasonable period after the purchase or assignment
of home loans;
intended by the purchaser or assignee to prevent the purchaser or
assignee from purchasing or taking assignment of any high cost
home loans; or
(4) satisfies the requirements of subdivisions (1) and (2) and
establishes that a reasonable person exercising ordinary due
diligence could not determine that the loan was a high cost home
loan based on the:
(A) documentation required by the federal Truth in Lending
Act (15 U.S.C. 1601 et seq.); and
(B) itemization of the amount financed and other disbursement
(b) A borrower acting only in an individual capacity may assert
against the creditor or any subsequent holder or assignee of a high cost
(1) a violation of IC 24-9-4-2 as a defense, claim, or counterclaim,
(A) an action to enjoin foreclosure or to preserve or obtain
possession of the dwelling that secures the loan is initiated;
(B) an action to collect on the loan or foreclose on the
collateral securing the loan is initiated; or
(C) the loan is more than sixty (60) days in default;
within three (3) years after the closing of a home loan;
(2) a violation of this article in connection to the high cost home
loan as a defense, claim, or counterclaim in an original action
within five (5) years after the closing of a high cost home loan;
(3) any defense, claim, counterclaim, or action to enjoin
foreclosure or preserve or obtain possession of the home that
secures the loan, including a violation of this article after:
(A) an action to collect on the loan or foreclose on the
collateral securing the loan is initiated;
(B) the debt arising from the loan is accelerated; or
(C) the loan is more than sixty (60) days in default;
at any time during the term of a high cost home loan.
(c) In an action, a claim, or a counterclaim brought under subsection
(b), the borrower may recover only amounts required to reduce or
extinguish the borrower's liability under a home loan plus amounts
required to recover costs, including reasonable attorney's fees.
(d) The provisions of this section are effective notwithstanding any
other provision of law. This section shall not be construed to limit the
substantive rights, remedies, or procedural rights available to a
borrower against any creditor, assignee, or holder under any other law.
The rights conferred on borrowers by subsections (a) and (b) are
independent of each other and do not limit each other.".
SOURCE: Page 3, line 28; (05)CR117902.3. -->
Page 3, line 28, delete ",".
Page 3, line 32, delete ",".
Page 20, line 40, after "of" insert " a".
Page 29, between lines 30 and 31, begin a new paragraph and insert:
SOURCE: IC 30-2-16; (05)CR117902.27. -->
"SECTION 27. IC 30-2-16 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
Chapter 16. Payroll Savings Plan Administration
Sec. 1. As used in this chapter, "participant" means an
individual who has accumulated a balance of funds with a payroll
savings plan administrator through a payroll savings plan.
Sec. 2. As used in this chapter, "payroll savings plan" means a
method provided by an employer to the employer's employees for
the voluntary purchase of United States savings bonds on a regular
schedule through the designation of an amount to be deducted each
pay period until a sufficient amount accumulates to pay the
purchase price of at least one (1) United States savings bond.
Sec. 3. As used in this chapter, "payroll savings plan
administrator" means an organization that:
(1) has been qualified by the Federal Reserve Bank or the
Bureau of the Public Debt under 31 CFR Part 317 to sell
United States savings bonds; and
(2) operates payroll savings plans on behalf of employers for
the purchase of United States savings bonds.
Sec. 4. As used in this chapter, "static balance" means an
amount held by a payroll savings plan administrator for a
(1) is not making allotments of payroll deductions to the
payroll savings plan administrator; but
(2) has not terminated the individual's directions to the
participant's employer or the employer's payroll savings plan
administrator to purchase United States savings bonds for the
individual when a sufficient balance accumulates to pay the
Sec. 5. Subject to this chapter, a payroll savings plan
administrator is entitled to reimbursement from a static balance
for reasonable expenses incurred in the performance of static
balance administration services beginning with the year after the
participant ceases to make allotments of payroll deductions to the
payroll savings plan administrator.
Sec. 6. Section 5 of this chapter applies only to an account in
which the static balance does not exceed fifty dollars ($50).
Sec. 7. Section 5 of this chapter does not apply to accounts
containing a static balance that would otherwise be reported to the
state under IC 32-34-1-26 as Indiana property.
Sec. 8. The maximum charge that may be imposed on an
account with a static balance is one dollar ($1) per month.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1179 as printed January 26, 2005.)
and when so amended that said bill do pass.
Committee Vote: Yeas 6, Nays 0.
CR117902/DI 110 2005