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 this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that
adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles
conflicts between statutes enacted by the 2006 Regular Session of the General Assembly.
AN ACT to amend the Indiana Code concerning financial institutions and commercial
law.
Be it enacted by the General Assembly of the State of Indiana:
to be eligible for continued employment.
(9) Minimum basic training requirements for each person
accepted for training at a law enforcement training school or
academy that include six (6) hours of training in interacting with
persons with mental illness, addictive disorders, mental
retardation, and developmental disabilities, to be provided by
persons approved by the secretary of family and social services
and the board.
(10) Minimum standards for a course of study on human and
sexual trafficking that must be required for each person accepted
for training at a law enforcement training school or academy and
for inservice training programs for law enforcement officers. The
course must cover the following topics:
(A) Examination of the human and sexual trafficking laws
(IC 35-42-3.5).
(B) Identification of human and sexual trafficking.
(C) Communicating with traumatized persons.
(D) Therapeutically appropriate investigative techniques.
(E) Collaboration with federal law enforcement officials.
(F) Rights of and protections afforded to victims.
(G) Providing documentation that satisfies the Declaration of
Law Enforcement Officer for Victim of Trafficking in Persons
(Form I-914, Supplement B) requirements established under
federal law.
(H) The availability of community resources to assist human
and sexual trafficking victims.
(b) Except as provided in subsection (l), a law enforcement officer
appointed after July 5, 1972, and before July 1, 1993, may not enforce
the laws or ordinances of the state or any political subdivision unless
the officer has, within one (1) year from the date of appointment,
successfully completed the minimum basic training requirements
established under this chapter by the board. If a person fails to
successfully complete the basic training requirements within one (1)
year from the date of employment, the officer may not perform any of
the duties of a law enforcement officer involving control or direction
of members of the public or exercising the power of arrest until the
officer has successfully completed the training requirements. This
subsection does not apply to any law enforcement officer appointed
before July 6, 1972, or after June 30, 1993.
(c) Military leave or other authorized leave of absence from law
enforcement duty during the first year of employment after July 6,
1972, shall toll the running of the first year, which shall be calculated
by the aggregate of the time before and after the leave, for the purposes
of this chapter.
(d) Except as provided in subsections (e), (l), and (q), and (r), a law
enforcement officer appointed to a law enforcement department or
agency after June 30, 1993, may not:
(1) make an arrest;
(2) conduct a search or a seizure of a person or property; or
(3) carry a firearm;
unless the law enforcement officer successfully completes, at a board
certified law enforcement academy or at a law enforcement training
center under section 10.5 or 15.2 of this chapter, the basic training
requirements established by the board under this chapter.
(e) This subsection does not apply to:
(1) a gaming agent employed as a law enforcement officer by the
Indiana gaming commission; or
(2) an:
(A) attorney; or
(B) investigator;
designated by the securities commissioner as a police officer
of the state under IC 23-2-1-15(i).
Before a law enforcement officer appointed after June 30, 1993,
completes the basic training requirements, the law enforcement officer
may exercise the police powers described in subsection (d) if the
officer successfully completes the pre-basic course established in
subsection (f). Successful completion of the pre-basic course authorizes
a law enforcement officer to exercise the police powers described in
subsection (d) for one (1) year after the date the law enforcement
officer is appointed.
(f) The board shall adopt rules under IC 4-22-2 to establish a
pre-basic course for the purpose of training:
(1) law enforcement officers;
(2) police reserve officers (as described in IC 36-8-3-20); and
(3) conservation reserve officers (as described in IC 14-9-8-27);
regarding the subjects of arrest, search and seizure, the lawful use of
force, and the operation of an emergency vehicle. The pre-basic course
must be offered on a periodic basis throughout the year at regional sites
statewide. The pre-basic course must consist of at least forty (40) hours
of course work. The board may prepare the classroom part of the
pre-basic course using available technology in conjunction with live
instruction. The board shall provide the course material, the instructors,
and the facilities at the regional sites throughout the state that are used
for the pre-basic course. In addition, the board may certify pre-basic
courses that may be conducted by other public or private training
entities, including postsecondary educational institutions.
(g) The board shall adopt rules under IC 4-22-2 to establish a
mandatory inservice training program for police officers. After June 30,
1993, a law enforcement officer who has satisfactorily completed basic
training and has been appointed to a law enforcement department or
agency on either a full-time or part-time basis is not eligible for
continued employment unless the officer satisfactorily completes the
mandatory inservice training requirements established by rules adopted
by the board. Inservice training must include training in interacting
with persons with mental illness, addictive disorders, mental
retardation, and developmental disabilities, to be provided by persons
approved by the secretary of family and social services and the board,
and training concerning human and sexual trafficking. The board may
approve courses offered by other public or private training entities,
including postsecondary educational institutions, as necessary in order
to ensure the availability of an adequate number of inservice training
programs. The board may waive an officer's inservice training
requirements if the board determines that the officer's reason for
lacking the required amount of inservice training hours is due to either
of the following:
(1) An emergency situation.
(2) The unavailability of courses.
(h) The board shall also adopt rules establishing a town marshal
basic training program, subject to the following:
(1) The program must require fewer hours of instruction and class
attendance and fewer courses of study than are required for the
mandated basic training program.
(2) Certain parts of the course materials may be studied by a
candidate at the candidate's home in order to fulfill requirements
of the program.
(3) Law enforcement officers successfully completing the
requirements of the program are eligible for appointment only in
towns employing the town marshal system (IC 36-5-7) and having
not more than one (1) marshal and two (2) deputies.
(4) The limitation imposed by subdivision (3) does not apply to an
officer who has successfully completed the mandated basic
training program.
(5) The time limitations imposed by subsections (b) and (c) for
completing the training are also applicable to the town marshal
basic training program.
(i) The board shall adopt rules under IC 4-22-2 to establish an
executive training program. The executive training program must
include training in the following areas:
(1) Liability.
(2) Media relations.
(3) Accounting and administration.
(4) Discipline.
(5) Department policy making.
(6) Lawful use of force.
(7) Department programs.
(8) Emergency vehicle operation.
(9) Cultural diversity.
(j) A police chief shall apply for admission to the executive training
program within two (2) months of the date the police chief initially
takes office. A police chief must successfully complete the executive
training program within six (6) months of the date the police chief
initially takes office. However, if space in the executive training
program is not available at a time that will allow completion of the
executive training program within six (6) months of the date the police
chief initially takes office, the police chief must successfully complete
the next available executive training program that is offered after the
police chief initially takes office.
(k) A police chief who fails to comply with subsection (j) may not
continue to serve as the police chief until completion of the executive
training program. For the purposes of this subsection and subsection
(j), "police chief" refers to:
(1) the police chief of any city;
(2) the police chief of any town having a metropolitan police
department; and
(3) the chief of a consolidated law enforcement department
established under IC 36-3-1-5.1.
A town marshal is not considered to be a police chief for these
purposes, but a town marshal may enroll in the executive training
program.
(l) A fire investigator in the division of fire and building safety
appointed after December 31, 1993, is required to comply with the
basic training standards established under this chapter.
(m) The board shall adopt rules under IC 4-22-2 to establish a
program to certify handgun safety courses, including courses offered
in the private sector, that meet standards approved by the board for
training probation officers in handgun safety as required by
IC 11-13-1-3.5(3).
(n) The board shall adopt rules under IC 4-22-2 to establish a
refresher course for an officer who:
(1) is hired by an Indiana law enforcement department or agency
as a law enforcement officer;
(2) worked as a full-time law enforcement officer for at least one
(1) year before the officer is hired under subdivision (1);
(3) has not been employed as a law enforcement officer for at
least two (2) years and less than six (6) years before the officer is
hired under subdivision (1) due to the officer's resignation or
retirement; and
(4) completed a basic training course certified by the board before
the officer is hired under subdivision (1).
(o) An officer to whom subsection (n) applies must successfully
complete the refresher course described in subsection (n) not later than
six (6) months after the officer's date of hire, or the officer loses the
officer's powers of:
(1) arrest;
(2) search; and
(3) seizure.
(p) A law enforcement officer who:
(1) has completed a basic training course certified by the board;
and
(2) has not been employed as a law enforcement officer in the six
(6) years before the officer is hired as a law enforcement officer;
is not eligible to attend the refresher course described in subsection (n)
and must repeat the full basic training course to regain law enforcement
powers.
(q) This subsection applies only to a gaming agent employed as a
law enforcement officer by the Indiana gaming commission. A gaming
agent appointed after June 30, 2005, may exercise the police powers
described in subsection (d) if:
(1) the agent successfully completes the pre-basic course
established in subsection (f); and
(2) the agent successfully completes any other training courses
established by the Indiana gaming commission in conjunction
with the board.
(r) This subsection applies only to a securities enforcement
officer designated as a law enforcement officer by the securities
commissioner. A securities enforcement officer may exercise the
police powers described in subsection (d) if:
(1) the securities enforcement officer successfully completes
the pre-basic course established in subsection (f); and
(2) the securities enforcement officer successfully completes
any other training courses established by the securities
commissioner in conjunction with the board.
SECTION 5. IC 23-2-2.5-34 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 34. (a) If in the opinion
of it appears to the commissioner that:
(1) the offer of any franchise is subject to registration under this
chapter and it is being, or it has been, offered for sale without
such offer first being registered; or
(2) a person has engaged in or is about to engage in an act, a
practice, or a course of business constituting a violation of this
chapter or a rule or an order under this chapter;
the commissioner may order the franchisor or offeror of such franchise
to cease and desist from the further offer or sale of such franchise
unless and until such offer has been registered under this chapter. If,
after such an order has been made, a request for a hearing is filed in
writing by the person to whom such order was directed, a hearing shall
be held to commence within fifteen (15) days after the request is made,
unless the person affected consents to a later date. investigate and
may issue, with or without a prior hearing, orders and notices as
the commissioner determines to be in the public interest, including
cease and desist orders, orders to show cause, and notices. After
notice and an opportunity for 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. In addition to all other remedies, the commissioner may
bring an action in the name of and on behalf of the state against
any person participating in or about to participate in a violation of
this chapter, to enjoin the person from continuing or doing an act
furthering a violation of this chapter and may obtain the
appointment of a receiver or conservator. Upon a proper showing
by the commissioner, the court shall enter an order of the
commissioner directing rescission, restitution, or disgorgement
against a person who has violated this chapter or a rule or order
under this chapter.
(b) Upon the issuance of an order or a notice by the
commissioner under subsection (a), the commissioner shall
promptly notify the respondent of the following:
(1) That the order or notice has been issued.
(2) The reasons the order or notice has been issued.
(3) That upon the receipt of a written request the matter will
be set for a hearing to commence not later than forty-five (45)
business days after the commissioner receives the request,
unless the respondent consents to a later date.
If the respondent does not request a hearing and the commissioner
does not order a hearing, the order or notice will remain in effect
until it is modified or vacated by the commissioner. If a hearing is
requested or ordered, the commissioner, after giving notice of the
hearing, may modify or vacate the order or extend it until final
determination.
(c) In a final order, the commissioner may charge the costs of an
investigation or a proceeding conducted in connection with a
violation of:
(1) this chapter; or
(2) a rule or an order adopted or issued under this chapter;
to be paid as directed by the commissioner in the order.
(d) In a proceeding in a circuit or superior court under this
section, the commissioner is entitled to recover all costs and
expenses of investigation to which the commissioner would be
entitled in an administrative proceeding, and the court shall
include the costs in its final judgment.
(e) If the commissioner determines, after notice and opportunity
for a hearing, that a person has violated this chapter, the
commissioner may, in addition to or instead of all other remedies,
impose a civil penalty upon the person in an amount not to exceed
ten thousand dollars ($10,000) for each violation. An appeal from
the decision of the commissioner imposing a civil penalty under
this subsection may be taken by an aggrieved party under section
44 of this chapter.
(f) The commissioner may bring an action in the circuit or
superior court of Marion County to enforce payment of any
penalty imposed under subsection (e).
(g) Penalties collected under this section shall be deposited in the
securities division enforcement account established under
IC 23-2-1-15(c).
SECTION 6. IC 23-2-5-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 3. (a) As used in this chapter,
"certificate of registration" means a certificate issued by the
commissioner authorizing an individual to engage in origination
activities on behalf of a licensee.
(b) As used in this chapter, "creditor" means a person:
(1) that loans funds of the person in connection with a loan; and
(2) to whom the loan is initially payable on the face of the note or
contract evidencing the loan.
(c) As used in this chapter, "license" means a license issued by the
commissioner authorizing a person to engage in the loan brokerage
business.
(d) As used in this chapter, "licensee" means a person that is issued
a license under this chapter.
(e) As used in this chapter, "loan broker" means any person who, in
return for any consideration from any source procures, attempts to
procure, or assists in procuring a loan from a third party or any other
person, whether or not the person seeking the loan actually obtains the
loan. "Loan broker" does not include:
(1) any supervised financial organization (as defined in
IC 24-4.5-1-301(20)), including a bank, savings bank, trust
company, savings association, or credit union; or
(2) any other financial institution that is:
(A) regulated by any agency of the United States or any state;
and
(B) regularly actively engaged in the business of making
consumer loans that are not secured by real estate or taking
assignment of consumer sales contracts that are not secured by
real estate;
(2) (3) any insurance company; or
(3) (4) any person arranging financing for the sale of the person's
product.
(f) As used in this chapter, "loan brokerage business" means a
person acting as a loan broker.
(g) As used in this chapter, "origination activities" means
communication with or assistance of a borrower or prospective
borrower in the selection of loan products or terms.
(h) As used in this chapter, "originator" means a person engaged in
origination activities. The term "originator" does not include a person
who performs origination activities for any entity that is not a loan
broker under subsection (e).
(i) As used in this chapter, "person" means an individual, a
partnership, a trust, a corporation, a limited liability company, a limited
liability partnership, a sole proprietorship, a joint venture, a joint stock
company, or another group or entity, however organized.
(j) As used in this chapter, "registrant" means an individual who is
registered:
(1) to engage in origination activities under this chapter; or
(2) as a principal manager.
(k) As used in this chapter, "ultimate equitable owner" means a
person who, directly or indirectly, owns or controls any ownership ten
percent (10%) or more of the equity interest in a person, loan
broker licensed or required to be licensed under this chapter,
regardless of whether the person owns or controls the ownership equity
interest through one (1) or more other persons or one (1) or more
proxies, powers of attorney, or variances.
(l) As used in this chapter, "principal manager" means an
individual who:
(1) has at least three (3) years of experience:
(A) as a loan broker; or
(B) in financial services;
that is acceptable to the commissioner; and
(2) is principally responsible for the supervision and
management of the employees and business affairs of a
licensee.
SECTION 7. IC 23-2-5-4 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 4. (a) Any person desiring to
engage or continue in the loan brokerage business shall apply to the
commissioner for a license under this chapter.
(b) An individual desiring to be employed by a licensee to engage
in origination activities shall be registered, by the licensee, with apply
to the commissioner for registration under section 5(a)(6) and section
5(c) of this chapter.
(c) Any individual desiring to be employed by a licensee as a
principal manager shall apply to the commissioner for registration
under this chapter.
SECTION 8. IC 23-2-5-5 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 5. (a) An application for license or
renewal of a license must contain:
(1) consent to service of process under subsection (e); (h);
(2) evidence of the bond required in subsection (b); (e);
(3) an application fee of two four hundred dollars ($200), ($400),
plus two hundred dollars ($200) for each ultimate equitable
owner;
commissioner in the amount of fifty thousand dollars ($50,000), which
shall be in favor of the state and shall secure payment of damages to
any person aggrieved by any violation of this chapter by the licensee.
(c) (f) The commissioner shall issue a license and license number
to an applicant that meets the licensure requirements of this chapter.
Whenever the registration provisions of this chapter have been
complied with, the commissioner shall issue a certificate of registration
and registration number authorizing the registrant to:
(1) engage in origination activities; or
(2) act as a principal manager;
whichever applies.
(d) Licenses issued by the commissioner before January 1, 2001,
shall be valid, and renewal of such licenses shall not be required until
January 1, 2001. Individuals engaging in origination activities for a
licensee before January 1, 2001, shall not be required to apply for and
receive a certificate of registration until January 1, 2001. Except as
otherwise provided in this subsection, licenses (g) Licenses and initial
certificates of registration issued by the commissioner are valid until
January 1 of the second year after issuance. The education
requirements of section 21 of this chapter shall first apply to applicants
for issuance or renewal of licenses or registrations effective as of
January 1, 2001.
(e) (h) Every applicant for licensure or registration or for renewal
of a license or a registration shall file with the commissioner, in such
form as the commissioner by rule or order prescribes, an irrevocable
consent appointing the secretary of state to be the applicant's agent to
receive service of any lawful process in any noncriminal suit, action,
or proceeding against the applicant arising from the violation of any
provision of this chapter. Service shall be made in accordance with the
Indiana Rules of Trial Procedure.
(f) (i) Upon good cause shown, the commissioner may waive the
requirements of subsection (a)(4) for one (1) or more of an applicant's
ultimate equitable owners, directors, managers, or officers.
(g) (j) Whenever an initial or a renewal application for a license or
registration is denied or withdrawn, the commissioner shall retain the
initial or renewal application fee paid.
(k) The commissioner shall require each:
(1) equitable owner; and
(2) applicant for registration as:
(A) an originator; or
(B) a principal manager;
provided by this subdivision in addition to, or as a substitute
for, any other remedy available to the commissioner under
this chapter.
SECTION 11. IC 23-2-5-10, AS AMENDED BY P.L.48-2006,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: 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 or an order under this
chapter, the commissioner may investigate and may issue, with a prior
hearing if there exists no substantial threat of immediate irreparable
harm or without a prior hearing, if there exists a substantial threat of
immediate irreparable harm, orders and notices as 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), the commissioner shall
promptly notify the respondent and, if the subject of the order or
notice is a registrant, the licensee for whom the registrant is
employed:
(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 fifteen (15) 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, or an ultimate equitable owner of a licensee:
(1) fails to maintain the bond required under section 5 of this
chapter;
(2) has, within the most recent ten (10) years:
(A) been the subject of an adjudication or a determination
by:
(i) a court with jurisdiction; or
(ii) an agency or administrator that regulates securities,
commodities, banking, financial services, insurance, real
estate, or the real estate appraisal industry;
in Indiana or in any other jurisdiction; and
(B) been found, after notice and opportunity for hearing,
to have violated the securities, commodities, banking,
financial services, insurance, real estate, or real estate
appraisal laws of Indiana or any other jurisdiction;
(3) has:
(A) been denied the right to do business in the securities,
commodities, banking, financial services, insurance, real
estate, or real estate appraisal industry; or
(B) had the person's authority to do business in the
securities, commodities, banking, financial services,
insurance, real estate, or real estate appraisal industry
revoked or suspended;
by Indiana or by any other state, federal, or foreign
governmental agency or self regulatory organization;
(2) (4) is insolvent;
(3) (5) has violated any provision of this chapter;
(4) (6) has knowingly filed with the commissioner any document
or statement containing any that:
(A) contains a false representation of a material fact; or
omitting
(B) fails to state a material fact; or if
(C) contains a representation that becomes false after the
filing but during the term of a license or certificate of
registration as provided in subsection (g); or (i);
(5) (7) has:
(A) been convicted, within ten (10) years before the date of the
application, renewal, or review, of any crime involving fraud
or deceit; or
(B) had a felony conviction (as defined in IC 35-50-2-1(b))
within five (5) years before the date of the application,
renewal, or review;
(8) if the person is a licensee or principal manager, has failed
to reasonably supervise the person's originators or employees
to ensure their compliance with this chapter;
(9) is on the most recent tax warrant list supplied to the
commissioner by the department of state revenue; or
(10) has engaged in dishonest or unethical practices in the
loan broker business, as determined by the commissioner.
(d) The commissioner may do either of the following:
(1) Censure:
(A) a licensee;
(B) an officer, a director, or an ultimate equitable owner of
a licensee;
(C) a registrant; or
(D) any other person;
who violates or causes a violation of this chapter.
(2) Permanently bar any person described in subdivision (1)
from being:
(A) licensed or registered under this chapter; or
(B) employed by or affiliated with a person licensed or
registered under this chapter;
if the person violates or causes a violation of this chapter.
(d) (e) The commissioner may not enter a final order:
(1) denying, suspending, or revoking the license of a licensee or
the registration of a registrant; or
(2) imposing other sanctions;
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 or before any proceeding is initiated
under this section. Upon the entry of a summary order, the
commissioner shall promptly notify all interested parties that it the
summary order 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.
(e) (f) IC 4-21.5 does not apply to a proceeding under this section.
(f) (g) 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 a
registrant seeks to transfer the registrant's registration to another
licensee who desires to have the registrant engage in origination
activities or serve as a principal manager, whichever applies, the
employer licensee registrant shall, within five (5) business days after
the employee first before the registrant conducts origination activities
or serves as a principal manager for the new employer, 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. a
registration application, as required by section 5 of this chapter.
(h) If the employment of a registrant is terminated, whether:
(1) voluntarily by the registrant; or
(2) by the licensee employing the registrant;
the licensee that employed the registrant shall, not later than five
(5) days after the termination, notify the commissioner of the
termination and the reasons for the termination.
(g) (i) 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 the change in a material fact or statement.
SECTION 12. IC 23-2-5-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 15. Any person who
violates this chapter or any rule or regulation adopted under this
chapter, in connection with a contract for the services of a loan broker,
is liable to any person damaged by the violation, for the amount of the
actual damages suffered, interest at the legal rate, and attorney's fees.
If a person violates any provision of this chapter, or any rule or
regulation adopted under this chapter, in connection with a contract
for loan brokering services, the contract is void, and the prospective
borrower is entitled to receive from the loan broker all sums paid to the
loan broker.
SECTION 13. IC 23-2-5-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 16. (a) Except as
provided in subsection (b), a person who knowingly violates this
chapter commits a Class D felony.
(b) A person commits a Class C felony if the person knowingly
makes or causes to be made:
(1) in any document filed with or sent to the commissioner or
the securities division; or
(2) in any proceeding, investigation, or examination under this
chapter;
any statement that is, at the time and in the light of the
circumstances under which it is made, false or misleading in any
material respect.
SECTION 14. IC 23-2-5-18.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 18.5. Whenever a person licensed
or registered under this chapter, or a person required to be
licensed or registered under this chapter, has possession of funds
belonging to others, including money received by or on behalf of a
prospective borrower, the person licensed or registered under this
chapter, or required to be licensed or registered under this
chapter, shall:
(1) upon request of the prospective borrower, account for any
funds handled for the prospective borrower;
(2) follow any reasonable and lawful instructions from the
prospective borrower concerning the prospective borrower's
funds; and
(3) return any unspent funds of the prospective borrower to
the prospective borrower in a timely manner.
SECTION 15. IC 23-2-5-19, AS AMENDED BY HEA 1555-2007,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 19. (a) The following persons are exempt from the
requirements of sections 4, 5, 6, 9, 17, 18, and 21 of this chapter:
(1) Any attorney while engaging in the practice of law.
(2) Any certified public accountant, public accountant, or
accountant practitioner holding a certificate or registered under
IC 25-2.1 while performing the practice of accountancy (as
defined by IC 25-2.1-1-10).
(3) Any person licensed as a real estate broker or salesperson
under IC 25-34.1 to the extent that the person is rendering loan
related services in the ordinary course of a transaction in which a
license as a real estate broker or salesperson is required.
adopt and amend rules necessary or appropriate to carry out this
article and may repeal rules, including rules and forms governing
registration statements, applications, notice filings, reports, and
other records;
(2) by rule, define terms, whether or not used in this article, but
those definitions may not be inconsistent with this article; and
(3) by rule, classify securities, persons, and transactions and adopt
different requirements for different classes.
(b) Under this article, a rule or form may not be adopted or
amended, or an order issued or amended, unless the commissioner
finds that the rule, form, order, or amendment is necessary or
appropriate in the public interest or for the protection of investors and
is consistent with the purposes intended by this article.
(c) Subject to Section 15(h) of the Securities Exchange Act of 1938
(15 U.S.C. 78o(h)) and Section 222 of the Investment Advisers Act of
1940 (15 U.S.C. 80b-18a), the commissioner may require that a
financial statement filed under this article be prepared in accordance
with generally accepted accounting principles in the United States and
comply with other requirements specified by rule adopted or order
issued under this article. A rule adopted or order issued under this
article may establish:
(1) subject to Section 15(h) of the Securities Exchange Act of
1934 (15 U.S.C. 78o(h)) and Section 222 of the Investment
Advisors Act of 1940 (15 U.S.C. 80b-18a), the form and content
of financial statements required under this article;
(2) whether unconsolidated financial statements must be filed;
and
(3) whether required financial statements must be audited by an
independent certified public accountant.
(d) The commissioner may provide interpretative opinions or issue
determinations that the commissioner will not institute a proceeding or
an action under this article against a specified person for engaging in
a specified act, practice, or course of business if the determination is
consistent with this article. The commissioner shall charge a fee of one
hundred dollars ($100) for an interpretive opinion or determination.
(e) A penalty under this article may not be imposed for, and liability
does not arise from, conduct that is engaged in or omitted in good faith
and reasonably believed to be conforming to a rule, form, or order of
the commissioner under this article.
(f) A hearing in an administrative proceeding under this article must
be conducted in public unless the commissioner for good cause
consistent with this article determines that the hearing will not be so
conducted. finds a statutory basis that would allow the hearing to
be closed to the public.
SECTION 20. IC 23-19-6-7, AS ADDED BY HEA 1555-2007,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 7. (a) Except as otherwise provided in subsection
(b), records obtained by the commissioner or filed under this article,
including a record contained in or filed with a registration statement,
application, notice filing, or report, are public records and are available
for public examination. inspection and copying.
(b) The following records are not public records confidential and
are not available for public examination inspection and copying under
subsection (a):
(1) A record obtained by the commissioner in connection with an
audit or inspection under IC 23-19-4-11(d) or an investigation
under section 2 of this chapter.
(2) A part of a record filed in connection with a registration
statement under IC 23-19-3-1 and IC 23-19-3-3 through
IC 23-19-3-5 or a record under IC 23-19-4-11(d) that contains
trade secrets or confidential information if the person filing the
registration statement or report has asserted a claim of
confidentiality or privilege that is authorized by law and approved
by the commissioner.
(3) A record that is not required to be provided to the
commissioner or filed under this article and is provided to the
commissioner only on the condition that the record will not be
subject to public examination or disclosure.
(4) A nonpublic record Confidential records received from a
person specified in section 8(a) of this chapter.
(5) Any Social Security number, residential address unless used
as a business address, and residential telephone number unless
used as a business telephone number, contained in a record that
is filed.
(6) A record obtained by the commissioner through a designee of
the commissioner that a rule or order under this article determines
has been:
(A) expunged from the commissioner's records by the
designee; or
(B) determined to be nonpublic or nondisclosable confidential
by that designee if the commissioner finds the determination
to be in the public interest and for the protection of investors.
based on statutory authority.
(c) If disclosure is for the purpose of a civil, administrative, or
criminal investigation, action, or proceeding or to a person specified in
section 8(a) of this chapter, the commissioner may disclose a record
obtained in connection with an audit or inspection under
IC 23-19-4-11(d) or a record obtained in connection with an
investigation under section 2 of this chapter.
SECTION 21. IC 25-11-1-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 9. (a) Upon the filing
with the secretary of state, by any interested person, of a verified
written complaint which charges any licensee hereunder with a specific
violation of any of the provisions of this chapter, the secretary of state
shall cause an investigation of the complaint to be made. If the
investigation shows probable cause for the revocation or suspension of
the license, the secretary of state shall send a written notice to such
licensee, stating in such notice the alleged grounds for the revocation
or suspension and fixing a time and place for the hearing thereof. The
hearing shall be held not less than five (5) days nor more than twenty
(20) days from the time of the mailing of said the notice, unless the
parties consent otherwise. The secretary of state may subpoena
witnesses, books, and records and may administer oaths. The licensee
may appear and defend against such charges in person or by counsel.
If upon such hearing the secretary of state finds the charges to be true,
the secretary of state shall either revoke or suspend the license of the
licensee. Suspension shall be for a time certain and in no event for a
longer period than one (1) year. No license shall be issued to any
person whose license has been revoked for a period of two (2) years
from the date of revocation. Reapplication for a license, after
revocation as provided, shall be made in the same manner as provided
in this chapter for an original application for a license.
(b) Whenever it appears to the secretary of state that a person
has engaged in or is about to engage in an act or practice
constituting a violation of this chapter or a rule or order under this
chapter, the secretary of state may investigate and may issue, with
or without a prior hearing, orders and notices as the secretary of
state determines to be in the public interest, including cease and
desist orders, orders to show cause, and notices. After notice and
hearing, the secretary of state 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. In addition to all
other remedies, the secretary of state may bring an action in the
name of and on behalf of the state against the person and any other
person participating in or about to participate in a violation of this
chapter, to enjoin the person from continuing or doing an act
furthering a violation of this chapter and may obtain the
appointment of a receiver or conservator. Upon a proper showing
by the secretary of state, the court shall enter an order of the
secretary of state directing rescission, restitution, or disgorgement
to a person who has violated this chapter or a rule or order under
this chapter.
(c) Upon the issuance of an order or a notice by the secretary of
state under subsection (b), the secretary of state shall promptly
notify the respondent of the following:
(1) That the order or notice has been issued.
(2) The reasons the order or notice has been issued.
(3) That upon the receipt of a written request the matter will
be set for a hearing to commence not less than five (5) days
and not more than twenty (20) days after the secretary of
state receives the request, unless the parties consent
otherwise.
If the respondent does not request a hearing and the secretary of
state does not order a hearing, the order or notice will remain in
effect until it is modified or vacated by the secretary of state. If a
hearing is requested or ordered, the secretary of state, after giving
notice of the hearing, may modify or vacate the order or extend it
until final determination.
(d) In a proceeding in a circuit or superior court under this
section, the secretary of state is entitled to recover all costs and
expenses of investigation to which the secretary of state would be
entitled in an administrative proceeding under IC 23-2-1-16(d),
and the court shall include the costs in its final judgment.
(e) For the purpose of any investigation or proceeding under
this chapter, the secretary of state may administer oaths and
affirmations, subpoena witnesses, compel their attendance, take
evidence, and require the production of any books, papers,
correspondence, memoranda, agreements, or other documents or
records that the secretary of state considers material to the
inquiry.
(f) Upon order of the secretary of state in any hearing, a
deposition may be taken of any witness. A deposition under this
chapter shall be:
(1) conducted in the manner prescribed by law for depositions
in civil actions; and
(2) made returnable to the secretary of state.
(g) If any person fails to obey a subpoena, the circuit or superior
court, upon application by the secretary of state, may issue to the
person an order requiring the person to appear before the
secretary of state to produce documentary evidence, if so ordered,
or to give evidence concerning the matter under investigation.
(h) A person is not excused from:
(1) attending any hearing or testifying before the secretary of
state; or
(2) producing any document or record;
in obedience to a subpoena of the secretary of state, or in any
proceeding instituted by the secretary of state, on the grounds that
the testimony or evidence, documentary or otherwise, required of
the person may tend to incriminate the person or subject the
person to a penalty or forfeiture. However, a person may not be
prosecuted or subjected to any penalty or forfeiture for or on
account of any transaction, matter, or thing about which the
person is compelled, after validly claiming the person's privilege
against self-incrimination, to testify or produce evidence,
documentary or otherwise.
SECTION 22. IC 25-11-1-14 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 14. The secretary of state may
delegate any or all of the rights, duties, or obligations of the
secretary of state under this chapter to:
(1) the securities commissioner appointed under
IC 23-2-1-15(a); or
(2) any other designee under the supervision and control of
the secretary of state.
SECTION 23. IC 25-11-1-15 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 15. (a) If the secretary of state
determines, after notice and opportunity for a hearing, that a
person has violated this chapter, the secretary of state may, in
addition to or instead of all other remedies, impose a civil penalty
upon the person in an amount not to exceed ten thousand dollars
($10,000) for each violation. An appeal from the decision of the
secretary of state imposing a civil penalty under this subsection
may be taken by an aggrieved party under section 16 of this
chapter.
(b) The secretary of state may bring an action in the circuit or
superior court of Marion County to enforce payment of any
penalty imposed under subsection (a).
(c) Penalties collected under this section shall be deposited in the
securities division enforcement account established under
IC 23-2-1-15(c).
SECTION 24. IC 25-11-1-16 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 16. (a) An appeal may be taken
from a final order of the secretary of state under this chapter as
follows:
(1) By an applicant for a license under this chapter, from a
final order of the secretary of state concerning the
application.
(2) By a licensee, from a final order of the secretary of state
affecting the licensee's license under this chapter.
(3) By any person against whom a civil penalty is imposed
under section 15 of this chapter, from the final order of the
secretary of state imposing the civil penalty.
(4) By any person who is named as a respondent in an
investigation or a proceeding under section 9 of this chapter,
from a final order of the secretary of state under section 9 of
this chapter. An appeal under this subdivision may be taken
in:
(A) the circuit or superior court of Marion County; or
(B) the circuit or superior court of the county in which the
appellant resides or maintains a place of business.
(b) A person who seeks to appeal an order of the secretary of
state under this section must serve the secretary of state with the
following not later than twenty (20) days after the entry of the
order:
(1) A written notice of the appeal stating:
(A) the court in which the appeal will be taken; and
(B) the grounds on which a reversal of the secretary of
state's final order is sought.
(2) A written demand from the appellant for:
(A) a certified transcript of the record; and
(B) all papers on file in the secretary of state's office;
concerning the order from which the appeal is being taken.
(3) A bond in the penal sum of five hundred dollars ($500)
payable to the state with sufficient surety to be approved by
the secretary of state, conditioned upon:
(A) the faithful prosecution of the appeal to final
judgment; and
(B) the payment of all costs that are adjudged against the
appellant.
(c) Not later than ten (10) days after the secretary of state is
served with the items described in subsection (b), the secretary of
state shall make, certify, and deliver to the appellant the transcript
described in subsection (b)(2)(A). Not later than five (5) days after
the appellant receives the transcript under this subsection, the
appellant shall file the transcript and a copy of the notice of appeal
with the clerk of the court. The notice of appeal serves as the
appellant's complaint. The secretary of state may appear before
the court, file any motion or pleading in the matter, and form the
issue. The cause shall be entered on the court's calendar to be
heard de novo and shall be given precedence over all matters
pending in the court.
(d) The court shall receive and consider any pertinent oral or
written evidence concerning the order of the secretary of state
from which the appeal is taken. If the order of the secretary of
state is reversed, the court shall in its mandate specifically direct
the secretary of state as to the secretary of state's further action in
the matter. The secretary of state is not barred from revoking or
altering the order for any proper cause that accrues or is
discovered after the order is entered. If the order is affirmed, the
appellant may, after thirty (30) days from the date the order is
affirmed, file a new application for a license under this chapter if
the application is not otherwise barred or limited. During the
pendency of the appeal, the order from which the appeal is taken
is not suspended but remains in effect unless otherwise ordered by
the court. An appeal may be taken from the judgment of the court
on the same terms and conditions as an appeal is taken in civil
actions.
(e) IC 4-21.5 does not apply to a proceeding under this chapter.
SECTION 25. IC 35-41-1-17, AS AMENDED BY P.L.1-2006,
SECTION 530, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 17. (a) "Law enforcement officer"
means:
(1) a police officer, sheriff, constable, marshal, prosecuting
attorney, special prosecuting attorney, special deputy prosecuting
attorney, the securities commissioner, or the inspector general;
(2) a deputy of any of those persons;
(3) an investigator for a prosecuting attorney or for the inspector
general;
(4) a conservation officer; or
(5) an enforcement officer of the alcohol and tobacco
commission; or
(6) an enforcement officer of the securities division of the
office of the secretary of state.
(b) "Federal enforcement officer" means any of the following:
(1) A Federal Bureau of Investigation special agent.
(2) A United States Marshals Service marshal or deputy.
(3) A United States Secret Service special agent.
(4) A United States Fish and Wildlife Service special agent.
(5) A United States Drug Enforcement Agency agent.
(6) A Bureau of Alcohol, Tobacco, Firearms and Explosives
agent.
(7) A United States Forest Service law enforcement officer.
(8) A United States Department of Defense police officer or
criminal investigator.
(9) A United States Customs Service agent.
(10) A United States Postal Service investigator.
(11) A National Park Service law enforcement commissioned
ranger.
(12) United States Department of Agriculture, Office of Inspector
General special agent.
(13) A United States Immigration and Naturalization Service
Citizenship and Immigration Services special agent.
(14) An individual who is:
(A) an employee of a federal agency; and
(B) authorized to make arrests and carry a firearm in the
performance of the individual's official duties.
SECTION 26. [EFFECTIVE JULY 1, 2007]: Sec. 19. (a) This
SECTION applies instead of IC 23-2-5-19. The following persons
are exempt from the requirements of sections 4, 5, 6, 9, 17, 18, and
21 of this chapter:
(1) Any attorney while engaging in the practice of law.
(2) Any certified public accountant, public accountant, or
accountant practitioner holding a certificate or registered
under IC 25-2.1 while performing the practice of accountancy
(as defined by IC 25-2.1-1-10).
(3) Any person licensed as a real estate broker or salesperson
under IC 25-34.1 to the extent that the person is rendering
loan related services in the ordinary course of a transaction in
which a license as a real estate broker or salesperson is
required.
(4) Any broker-dealer, agent, or investment advisor registered
under IC 23-2-1.
(5) Any person that:
(A) procures;
(B) promises to procure; or
(C) assists in procuring;
a loan that is not subject to the Truth in Lending Act (15
U.S.C. 1601 through 1667e).
(6) Any community development corporation (as defined in
IC 4-4-28-2) acting as a subrecipient of funds from the
Indiana housing and community development authority
established by IC 5-20-1-3.
(7) The Indiana housing and community development
authority.
(8) Subject to subsection (e), and except as provided in
subsection (f), any person authorized to:
(A) sell and service a loan for the Federal National
Mortgage Association or the Federal Home Loan
Mortgage Association;
(B) issue securities backed by the Government National
Mortgage Association;
(C) make loans insured by the United States Department
of Housing and Urban Development or the United States
Department of Agriculture Rural Housing Service; or
(D) act as a supervised lender or nonsupervised automatic
lender of the United States Department of Veterans
Affairs.
(E) act as a correspondent of loans insured by the United
States Department of Housing and Urban Development, if
the person closes at least twenty-five (25) such insured
loans in Indiana during each calendar year.
(9) Any person who is a creditor, or proposed to be a creditor,
for any loan.
(b) As used in this chapter, "bona fide third party fee" includes
fees for the following:
(1) Credit reports, investigations, and appraisals performed
by a person who holds a license or certificate as a real estate
appraiser under IC 25-34.1-8.
(2) If the loan is to be secured by real property, title
examinations, an abstract of title, title insurance, a property
survey, and similar purposes.
(3) The services provided by a loan broker in procuring
possible business for a lending institution if the fees are paid
by the lending institution.
(c) As used in this section, "successful procurement of a loan"
means that a binding commitment from a creditor to advance
money has been received and accepted by the borrower.
(d) The burden of proof of any exemption or classification
provided in this chapter is on the party claiming the exemption or
classification.
(e) A person claiming an exemption under subsection (a)(8)
shall, as a condition to receiving or maintaining the exemption, file
a notice every twenty-four (24) months on a form acceptable to the
commissioner. The notice required under this subsection must:
(1) provide the name and business address of each originator
employed by the person to originate loans in Indiana;
(2) include all other information required by the
commissioner; and
(3) be accompanied by a fee of two hundred dollars ($200).
If any information included in a notice under this subsection
changes after the notice has been submitted, the person shall
provide written notice to the commissioner of the change. The
commissioner's receipt of a notice under this subsection shall not
be considered to be a determination or confirmation by the
commissioner of the validity of the claimed exemption.
(f) An exemption described in subsection (a)(8) does not extend
to:
(1) a subsidiary of the exempt person; or
(2) an unaffiliated third party.
An exemption that applies to a person under subsection (a)(8)(D)
does not extend to a registered United States Department of
Veterans Affairs agent.
(g) This SECTION expires June 30, 2008.
SECTION 27. [EFFECTIVE JULY 1, 2007] (a) The definitions in
IC 23-2-5, as amended by this act, apply throughout this
SECTION.
(b) IC 23-2-5, as amended by this act, applies to a person who
applies for an initial:
(1) license as a loan broker;
(2) registration as an originator;
(3) registration as a principal manager; or
(4) exemption under IC 23-2-5-19, as amended by this act;
after June 30, 2007.
(c) Except as otherwise provided in this SECTION, IC 23-2-5,
as amended by this act, applies to a person who:
(1) is licensed as a loan broker under IC 23-2-5, before its
amendment by this act; or
(2) is registered as an originator under IC 23-2-5, before its
amendment by this act;
after December 31, 2007.
(d) A person who:
(1) is licensed as a loan broker under IC 23-2-5, before its
amendment by this act; or
(2) qualifies for an exemption under IC 23-2-5-19(a)(8)(E),
before its amendment by this act, but does not qualify for an
exemption under IC 23-2-5-19(a)(8)(E), after its amendment
by this act;
must comply with IC 23-2-5-20.5(b) not later than July 1, 2008.
(e) A person who:
(1) qualifies for an exemption under IC 23-2-5-19(a)(8)(E),
before its amendment by this act; but
(2) does not qualify for an exemption under
IC 23-2-5-19(a)(8)(E), after its amendment by this act;
must comply with IC 23-2-5-4, as amended by this act, not later
than January 1, 2008.
(f) A person who:
(1) qualifies for an exemption under IC 23-2-5-19(a)(8)(A)
through IC 23-2-5-19(a)(8)(D), before July 1, 2007; or
(2) qualifies for an exemption under IC 23-2-5-19(a)(8)(E),
both before and after its amendment by this act;
must comply with IC 23-2-5-19(e) not later than January 1, 2008.
(g) This SECTION expires January 1, 2009.
SECTION 28. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "department" refers to the department of financial
institutions established by IC 28-11-1-1.
(b) The department shall study the feasibility of assuming
responsibility for regulating all:
(1) loan brokers;
(2) originators; and
(3) principal managers;
required to be licensed or registered under IC 23-2-5 on the date
of enactment of this act.
(c) In conducting the study required under subsection (b), the
department shall determine the following:
(1) The costs and benefits of implementing a complaint based
regulatory system, including:
(A) the budget and staffing needs of the department;
(B) the time required to take all necessary actions to
implement the system; and
(C) a comparison of the costs and benefits of implementing
the system described in this subdivision with the costs and
benefits of implementing a system described in subdivision
(2).
(2) The costs and benefits of implementing an examination
based regulatory system, including:
(A) the budget and staffing needs of the department;
(B) the time required to take all necessary actions to
implement the system; and
(C) a comparison of the costs and benefits of implementing
the system described in this subdivision with the costs and
benefits of implementing a system described in subdivision
(1).
(d) In addition to conducting the required analyses under
subsection (b), the department may study any other issues related
to the licensing and regulation of loan brokers, originators, and
principal managers that the department considers relevant to the
department's ability to undertake the responsibilities described in
this SECTION.
(e) The department shall provide:
(1) status reports on the department's progress in conducting
the study required by this SECTION; and
(2) any preliminary data gathered or determinations made in
conducting the study required by this SECTION;
as may be requested by the interim study committee on mortgage
lending practices and home loan foreclosures established under
this act.
(f) The department shall report its findings and any
recommendations to the legislative council not later than
November 1, 2007. The department's report to the legislative
council under this subsection must be in an electronic format under
IC 5-14-6.
(g) This SECTION expires January 1, 2008.
SECTION 29. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "commissioner" refers to the securities commissioner
appointed under IC 23-2-1-15(a).
(b) "Division" refers to the securities division of the office of the
secretary of state.
(c) Not later than November 1, 2007, the commissioner shall
report to the legislative council on the regulation and:
(1) licensing of loan brokers; and
(2) registration of originators and principal managers;
under IC 25-2-5, as amended by this act.
(d) The report required under subsection (c) must include
information on the following:
(1) The budget and staffing needs of the division to implement
IC 23-2-5, as amended by this act.
(2) Any additional actions needed to implement IC 23-2-5, as
amended by this act, and the time needed by the division to
complete the actions.
(3) The number of initial licenses and registrations issued by
the commissioner under IC 25-2-5, as amended by this act,
after June 30, 2007.
(4) Any challenges encountered or anticipated by the
commissioner in implementing IC 25-2-5, as amended by this
act.
(5) Any additional information that may be requested by:
(A) the legislative council; or
(B) the interim study committee on mortgage lending
practices and home loan foreclosures established under
this act.
(6) Any recommendations of the commissioner on the
implementation of IC 25-2-5, as amended by this act.
(e) The commissioner's report to the legislative council under
this SECTION must be in an electronic format under IC 5-14-6.
(f) This SECTION expires January 1, 2008.
SECTION 30. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "committee" refers to the interim study committee on
mortgage lending practices and home loan foreclosures established
by this SECTION.
(b) There is established the interim study committee on
mortgage lending practices and home loan foreclosures. The
committee shall study the following:
(1) The appropriateness of requiring state licensure for all
mortgage lenders, loan brokers, originators, settlement
service providers, and real estate appraisers.
(2) The appropriate state agency or regulatory body to
oversee the regulation of mortgage lenders, loan brokers,
originators, settlement service providers, and real estate
appraisers.
(3) Other states' approaches to regulating mortgage lenders,
loan brokers, originators, settlement service providers, and
real estate appraisers. In examining the regulatory
approaches of other states under this subdivision, the
committee shall attempt to identify those approaches that:
(A) incorporate an efficient or streamlined regulatory
framework; or
(B) otherwise represent best practices for state regulation
of mortgage lenders, loan brokers, originators, settlement
service providers, and real estate appraisers.
(4) The causes of home loan foreclosures in Indiana, including
a study of the causes of home loan foreclosures with respect
to new home construction in Indiana.
(5) Whether legislative or regulatory solutions exist to:
(A) prevent or reduce the number of home loan
foreclosures in Indiana; and
(B) prevent or reduce the occurrence of fraudulent
practices in the home loan industry.
(6) Issues concerning the referral of borrowers or potential
borrowers to appraisal companies by mortgage lenders, loan
brokers, originators, or settlement service providers that have
an:
(A) ownership or investment interest in or compensation
arrangement with an appraisal company; or
(B) immediate family member that has an ownership or
investment interest in or compensation arrangement with
an appraisal company.
(7) Issues concerning the referral of settlement service
providers by mortgage lenders, loan brokers, or originators
that have:
(A) a business relationship or an ownership interest in a
settlement service provider; or
Date: