First Regular Session of the 120th General Assembly (2017)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the IndianaConstitution) 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 constitutionalprovision adopted), the text of the new provision will appear in this style type. Also, theword NEW will appear in that style type in the introductory clause of each SECTION that addsa 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 conflictsbetween statutes enacted by the 2016 Regular Session of the General Assembly.

HOUSE ENROLLED ACT No. 1539

AN ACT to amend the Indiana Code concerning financialinstitutions.

Be it enacted by the General Assembly of the State of Indiana:

SECTION 1. IC 24-4.4-1-102, AS AMENDED BY P.L.73-2016,SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 102. (1) This article shall be liberally construedand applied to promote its underlying purposes and policies.

(2) The underlying purposes and policies of this article are:(a) to permit and encourage the development of fair andeconomically sound first lien mortgage lending practices; and(b) to conform the regulation of first lien mortgage lendingpractices to applicable state and federal laws, rules, regulations,policies, and guidance.

(3) A reference to a requirement imposed by this article includesreference to a related rule of the department adopted under this article.

(4) A reference to a federal law in this article is a reference to thelaw as in effect December 31, 2015. 2016.

SECTION 2. IC 24-4.4-1-205 IS ADDED TO THE INDIANACODE AS A NEW SECTION TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2017]: Sec. 205. A licensee may carry onother business at a location where the licensee engages in first lienmortgage transactions unless the licensee carries on other businessfor the purpose of evasion or violation of this article.

SECTION 3. IC 24-4.4-2-202, AS ADDED BY P.L.89-2011,

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SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 202. (1) The creditor shall comply with disclosurerequirements applicable to first lien mortgage transactions in thefederal Consumer Credit Protection Act (15 U.S.C. 1601 et seq.).

(2) For purposes of subsection (1), disclosures are not required if thetransaction is exempt from the federal Consumer Credit Protection Act(15 U.S.C. 1601 et seq.).

SECTION 4. IC 24-4.4-2-502, AS AMENDED BY P.L.1-2009,SECTION 135, IS AMENDED TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2017]: Sec. 502. (1) A violation by a creditorin a first lien mortgage transaction of Section 125 of the FederalConsumer Credit Protection Act (15 U.S.C. 1635) (concerning adebtor's right to rescind a transaction) constitutes a violation of thisarticle. A creditor may not accrue interest during the period when afirst lien mortgage transaction may be rescinded under Section 125 ofthe Federal Consumer Credit Protection Act (15 U.S.C. 1635).

(2) A creditor must make available for disbursement the proceedsof a transaction subject to subsection (1) on the later of:

(a) the date the creditor is reasonably satisfied that the debtor hasnot rescinded the transaction; or(b) the first business day after the expiration of the rescissionperiod under subsection (1).

SECTION 5. IC 24-4.5-1-102, AS AMENDED BY P.L.73-2016,SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 102. (1) This article shall be liberally construedand applied to promote its underlying purposes and policies.

(2) The underlying purposes and policies of this article are:(a) to simplify, clarify, and modernize the law governing retailinstallment sales, consumer credit, small loans, and usury;(b) to provide rate ceilings to assure an adequate supply of creditto consumers;(c) to further consumer understanding of the terms of credittransactions and to foster competition among suppliers ofconsumer credit so that consumers may obtain credit atreasonable cost;(d) to protect consumer buyers, lessees, and borrowers againstunfair practices by some suppliers of consumer credit, having dueregard for the interests of legitimate and scrupulous creditors;(e) to permit and encourage the development of fair andeconomically sound consumer credit practices;(f) to conform the regulation of consumer credit transactions tothe policies of the Federal Consumer Credit Protection Act (15

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U.S.C. 1601 et seq.) and to applicable state and federal laws,rules, regulations, policies, and guidance; and(g) to make uniform the law, including administrative rulesamong the various jurisdictions.

(3) A reference to a requirement imposed by this article includesreference to a related rule or guidance of the department adoptedpursuant to this article.

(4) A reference to a federal law in this article is a reference to thelaw as in effect December 31, 2015. 2016.

(5) This article applies to a transaction if the director determinesthat the transaction:

(a) is in substance a disguised consumer credit transaction; or(b) involves the application of subterfuge for the purpose ofavoiding this article.

A determination by the director under this subsection must be inwriting and shall be delivered to all parties to the transaction.IC 4-21.5-3 applies to a determination made under this subsection.

(6) The authority of this article remains in effect, whether a licensee,an individual, or a person subject to this article acts or claims to actunder any licensing or registration law of this state, or claims to actwithout such authority.

(7) A violation of a state or federal law, regulation, or ruleapplicable to consumer credit transactions is a violation of this article.

(8) The department may enforce penalty provisions set forth in 15U.S.C. 1640 for violations of disclosure requirements applicable tomortgage transactions.

SECTION 6. IC 24-4.5-1-301.5, AS AMENDED BY THETECHNICAL CORRECTIONS BILL OF THE 2017 GENERALASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 301.5. In addition to definitions appearing insubsequent chapters in this article, the following definitions applythroughout this article:

(1) "Affiliate", with respect to any person subject to this article,means a person that, directly or indirectly, through one (1) or moreintermediaries:

(a) controls;(b) is controlled by; or(c) is under common control with;

the person subject to this article.(2) "Agreement" means the bargain of the parties in fact as found in

their language or by implication from other circumstances, includingcourse of dealing or usage of trade or course of performance.

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(3) "Agricultural purpose" means a purpose related to theproduction, harvest, exhibition, marketing, transportation, processing,or manufacture of agricultural products by a natural person whocultivates, plants, propagates, or nurtures the agricultural products."Agricultural products" includes agricultural, horticultural, viticultural,and dairy products, livestock, wildlife, poultry, bees, forest products,fish and shellfish, and any and all products raised or produced on farmsand any processed or manufactured products thereof.

(4) "Average daily balance" means the sum of each of the dailybalances in a billing cycle divided by the number of days in the billingcycle, and if the billing cycle is a month, the creditor may elect to treatthe number of days in each billing cycle as thirty (30).

(5) "Closing costs" with respect to a subordinate lien mortgagetransaction includes:

(a) fees or premiums for title examination, title insurance, orsimilar purposes, including surveys;(b) fees for preparation of a deed, settlement statement, or otherdocuments;(c) escrows for future payments of taxes and insurance;(d) fees for notarizing deeds and other documents;(e) appraisal fees; and(f) fees for credit reports.

(6) "Conspicuous" refers to a term or clause when it is so writtenthat a reasonable person against whom it is to operate ought to havenoticed it.

(7) "Consumer credit" means credit offered or extended to aconsumer primarily for a personal, family, or household purpose.

(8) "Consumer credit sale" is a sale of goods, services, or an interestin land in which:

(a) credit is granted by a person who regularly engages as a sellerin credit transactions of the same kind;(b) the buyer is a person other than an organization;(c) the goods, services, or interest in land are purchased primarilyfor a personal, family, or household purpose;(d) either the debt is payable in installments or a credit servicecharge is made; and(e) with respect to a sale of goods or services, either:

(i) the amount of credit extended, the written credit limit, orthe initial advance does not exceed fifty-three thousand fivehundred dollars ($53,500) or another the exempt thresholdamount, as adjusted in accordance with the annual adjustmentof the exempt threshold amount, specified in Regulation Z (12

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CFR 226.3 or 12 CFR 1026.3(b), as applicable); or(ii) the debt is secured by personal property used or expectedto be used as the principal dwelling of the buyer.

Unless the sale is made subject to this article by agreement(IC 24-4.5-2-601), "consumer credit sale" does not include a salein which the seller allows the buyer to purchase goods or servicespursuant to a lender credit card or similar arrangement or, exceptas provided with respect to disclosure (IC 24-4.5-2-301), debtors'remedies (IC 24-4.5-5-201), providing payoff amounts(IC 24-4.5-2-209), and powers and functions of the department(IC 24-4.5-6), a sale of an interest in land which is a first lienmortgage transaction.

(9) "Consumer loan" means a loan made by a person regularlyengaged in the business of making loans in which:

(a) the debtor is a person other than an organization;(b) the debt is primarily for a personal, family, or householdpurpose;(c) either the debt is payable in installments or a loan financecharge is made; and(d) either:

(i) the amount of credit extended, the written credit limit, orthe initial advance does not exceed fifty-three thousand fivehundred dollars ($53,500) or another the exempt thresholdamount, as adjusted in accordance with the annual adjustmentof the exempt threshold amount, specified in Regulation Z (12CFR 226.3 or 12 CFR 1026.3(b), as applicable); or(ii) the debt is secured by an interest in land or by personalproperty used or expected to be used as the principal dwellingof the debtor.

Except as described in IC 24-4.5-3-105, the term does not include afirst lien mortgage transaction.

(10) "Credit" means the right granted by a creditor to a debtor todefer payment of debt or to incur debt and defer its payment.

(11) "Creditor" means a person:(a) who regularly engages in the extension of consumer credit thatis subject to a credit service charge or loan finance charge, asapplicable, or is payable by written agreement in more than four(4) installments (not including a down payment); and(b) to whom the obligation is initially payable, either on the faceof the note or contract, or by agreement when there is not a noteor contract.

(12) "Depository institution" has the meaning set forth in the

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Federal Deposit Insurance Act (12 U.S.C. 1813(c)) and includes anycredit union.

(13) "Director" means the director of the department of financialinstitutions or the director's designee.

(14) "Dwelling" means a residential structure that contains one (1)to four (4) units, regardless of whether the structure is attached to realproperty. The term includes an individual:

(a) condominium unit;(b) cooperative unit;(c) mobile home; or(d) trailer;

that is used as a residence.(15) "Earnings" means compensation paid or payable for personal

services, whether denominated as wages, salary, commission, bonus,or otherwise, and includes periodic payments under a pension orretirement program.

(16) "Employee" means an individual who is paid wages or othercompensation by an employer required under federal income tax lawto file Form W-2 on behalf of the individual.

(17) "Federal banking agencies" means the Board of Governors ofthe Federal Reserve System, the Office of the Comptroller of theCurrency, the Office of Thrift Supervision, the National Credit UnionAdministration, and the Federal Deposit Insurance Corporation.

(18) "First lien mortgage transaction" means:(a) a consumer loan; or(b) a consumer credit sale;

that is or will be used by the debtor primarily for personal, family, orhousehold purposes and that is secured by a mortgage or a landcontract (or another consensual security interest equivalent to amortgage or a land contract) that constitutes a first lien on a dwellingor on residential real estate upon which a dwelling is constructed orintended to be constructed.

(19) "Immediate family member" means a spouse, child, sibling,parent, grandparent, or grandchild. The term includes stepparents,stepchildren, stepsiblings, and adoptive relationships.

(20) "Individual" means a natural person.(21) "Lender credit card or similar arrangement" means an

arrangement or loan agreement, other than a seller credit card, pursuantto which a lender gives a debtor the privilege of using a credit card,letter of credit, or other credit confirmation or identification intransactions out of which debt arises:

(a) by the lender's honoring a draft or similar order for the

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payment of money drawn or accepted by the debtor;(b) by the lender's payment or agreement to pay the debtor'sobligations; or(c) by the lender's purchase from the obligee of the debtor'sobligations.

(22) "Licensee" means a person licensed as a creditor under thisarticle.

(23) "Loan brokerage business" means any activity in which aperson, in return for any consideration from any source, procures,attempts to procure, or assists in procuring, a mortgage transactionfrom a third party or any other person, whether or not the personseeking the mortgage transaction actually obtains the mortgagetransaction.

(24) "Loan processor or underwriter" means an individual whoperforms clerical or support duties as an employee at the direction of,and subject to the supervision and instruction of, a person licensed orexempt from licensing under this article. For purposes of thissubsection, the term "clerical or support duties" may include, after thereceipt of an application, the following:

(a) The receipt, collection, distribution, and analysis ofinformation common for the processing or underwriting of amortgage transaction.(b) The communication with a consumer to obtain the informationnecessary for the processing or underwriting of a loan, to theextent that the communication does not include:

(i) offering or negotiating loan rates or terms; or(ii) counseling consumers about mortgage transaction rates orterms.

An individual engaging solely in loan processor or underwriteractivities shall not represent to the public through advertising or othermeans of communicating or providing information, including the useof business cards, stationery, brochures, signs, rate lists, or otherpromotional items, that the individual can or will perform any of theactivities of a mortgage loan originator.

(25) "Mortgage loan originator" means an individual who, forcompensation or gain, or in the expectation of compensation or gain,regularly engages in taking a mortgage transaction application or inoffering or negotiating the terms of a mortgage transaction that eitheris made under this article or under IC 24-4.4 or is made by an employeeof a person licensed or exempt from licensing under this article orunder IC 24-4.4, while the employee is engaging in the loan brokeragebusiness. The term does not include the following:

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(a) An individual engaged solely as a loan processor orunderwriter as long as the individual works exclusively as anemployee of a person licensed or exempt from licensing underthis article.(b) Unless the person or entity is compensated by:

(i) a creditor;(ii) a loan broker;(iii) another mortgage loan originator; or(iv) any agent of the creditor, loan broker, or other mortgageloan originator described in items (i) through (iii);

a person or entity that only performs real estate brokerageactivities and is licensed or registered in accordance withapplicable state law.(c) A person solely involved in extensions of credit relating totimeshare plans (as defined in 11 U.S.C. 101(53D)).

(26) "Mortgage servicer" means the last person to whom amortgagor or the mortgagor's successor in interest has been instructedby a mortgagee to send payments on a loan secured by a mortgage.

(27) "Mortgage transaction" means:(a) a consumer loan; or(b) a consumer credit sale;

that is or will be used by the debtor primarily for personal, family, orhousehold purposes and that is secured by a mortgage or a landcontract (or another consensual security interest equivalent to amortgage or a land contract) on a dwelling or on residential real estateupon which a dwelling is constructed or intended to be constructed.

(28) "Nationwide Multistate Licensing System and Registry" (or"Nationwide Mortgage Licensing System and Registry" or "NMLSR")means a mortgage multistate licensing system developed andmaintained by the Conference of State Bank Supervisors and theAmerican Association of Residential Mortgage Regulators owned andoperated by the State Regulatory Registry, LLC, or by any successoror affiliated entity, for the licensing and registration of creditors, andmortgage loan originators, and other persons in the mortgage orfinancial services industries. The term includes any other name oracronym that may be assigned to the system by the State RegulatoryRegistry, LLC, or by any successor or affiliated entity.

(29) "Nontraditional mortgage product" means any mortgageproduct other than a thirty (30) year fixed rate mortgage.

(30) "Official fees" means:(a) fees and charges prescribed by law which actually are or willbe paid to public officials for determining the existence of or for

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perfecting, releasing, or satisfying a security interest related to aconsumer credit sale, consumer lease, or consumer loan; or(b) premiums payable for insurance in lieu of perfecting a securityinterest otherwise required by the creditor in connection with thesale, lease, or loan, if the premium does not exceed the fees andcharges described in paragraph subdivision (a) that wouldotherwise be payable.

(31) "Organization" means a corporation, a government orgovernmental subdivision, an agency, a trust, an estate, a partnership,a limited liability company, a cooperative, an association, a jointventure, an unincorporated organization, or any other entity, howeverorganized.

(32) "Payable in installments" means that payment is required orpermitted by written agreement to be made in more than four (4)installments not including a down payment.

(33) "Person" includes an individual or an organization.(34) "Person related to" with respect to an individual means:

(a) the spouse of the individual;(b) a brother, brother-in-law, sister, or sister-in-law of theindividual;(c) an ancestor or lineal descendants of the individual or theindividual's spouse; and(d) any other relative, by blood or marriage, of the individual orthe individual's spouse who shares the same home with theindividual.

(35) "Person related to" with respect to an organization means:(a) a person directly or indirectly controlling, controlled by, orunder common control with the organization;(b) a director, an executive officer, or a manager of theorganization or a person performing similar functions with respectto the organization or to a person related to the organization;(c) the spouse of a person related to the organization; and(d) a relative by blood or marriage of a person related to theorganization who shares the same home with the person.

(36) "Presumed" or "presumption" means that the trier of fact mustfind the existence of the fact presumed, unless and until evidence isintroduced that would support a finding of its nonexistence.

(37) "Real estate brokerage activity" means any activity thatinvolves offering or providing real estate brokerage services to thepublic, including the following:

(a) Acting as a real estate agent or real estate broker for a buyer,seller, lessor, or lessee of real property.

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(b) Bringing together parties interested in the sale, purchase,lease, rental, or exchange of real property.(c) Negotiating, on behalf of any party, any part of a contractrelating to the sale, purchase, lease, rental, or exchange of realproperty (other than in connection with providing financing withrespect to the sale, purchase, lease, rental, or exchange of realproperty).(d) Engaging in any activity for which a person is required to beregistered or licensed as a real estate agent or real estate brokerunder any applicable law.(e) Offering to engage in any activity, or act in any capacity,described in this subsection.

(38) "Registered mortgage loan originator" means any individualwho:

(a) meets the definition of mortgage loan originator and is anemployee of:

(i) a depository institution;(ii) a subsidiary that is owned and controlled by a depositoryinstitution and regulated by a federal banking agency; or(iii) an institution regulated by the Farm CreditAdministration; and

(b) is registered with, and maintains a unique identifier through,the NMLSR.

(39) "Regularly engaged", with respect to a person who extendsconsumer credit, refers to a person who:

(a) extended consumer credit:(i) more than twenty-five (25) times; or(ii) more than five (5) times for a mortgage transaction securedby a dwelling;

in the preceding calendar year; or(b) extends or will extend consumer credit:

(i) more than twenty-five (25) times; or(ii) more than five (5) times for a mortgage transaction securedby a dwelling;

in the current calendar year, if the person did not meet thenumerical standards described in subdivision (a) in the precedingcalendar year.

(40) "Residential real estate" means any real property that is locatedin Indiana and on which there is located or intended to be constructeda dwelling.

(41) "Seller credit card" means an arrangement that gives to a buyeror lessee the privilege of using a credit card, letter of credit, or other

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credit confirmation or identification for the purpose of purchasing orleasing goods or services from that person, a person related to thatperson, or from that person and any other person. The term includes acard that is issued by a person, that is in the name of the seller, and thatcan be used by the buyer or lessee only for purchases or leases atlocations of the named seller.

(42) "Subordinate lien mortgage transaction" means:(a) a consumer loan; or(b) a consumer credit sale;

that is or will be used by the debtor primarily for personal, family, orhousehold purposes and that is secured by a mortgage or a landcontract (or another consensual security interest equivalent to amortgage or a land contract) that constitutes a subordinate lien on adwelling or on residential real estate upon which a dwelling isconstructed or intended to be constructed.

(43) "Unique identifier" means a number or other identifier assignedby protocols established by the NMLSR.

(44) "Land contract" means a contract for the sale of real estate inwhich the seller of the real estate retains legal title to the real estateuntil the total contract price is paid by the buyer.

(45) "Bona fide nonprofit organization" means an organization thatdoes the following, as determined by the director under criteriaestablished by the director:

(a) Maintains tax exempt status under Section 501(c)(3) of theInternal Revenue Code.(b) Promotes affordable housing or provides home ownershipeducation or similar services.(c) Conducts the organization's activities in a manner that servespublic or charitable purposes.(d) Receives funding and revenue and charges fees in a mannerthat does not encourage the organization or the organization'semployees to act other than in the best interests of theorganization's clients.(e) Compensates the organization's employees in a manner thatdoes not encourage employees to act other than in the bestinterests of the organization's clients.(f) Provides to, or identifies for, debtors mortgage transactionswith terms that are favorable to the debtor (as described in section202(b)(15) of this chapter) and comparable to mortgagetransactions and housing assistance provided under governmenthousing assistance programs.(g) Maintains certification by the United States Department of

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Housing and Urban Development or employs counselors who arecertified by the Indiana housing and community developmentauthority.

(46) "Civil proceeding advance payment transaction", or "CPAPtransaction", has the meaning set forth in IC 24-4.5-3-110.

(47) "Civil proceeding", with respect to a CPAP transaction, hasthe meaning set forth in IC 24-4.5-3-110.5.

(48) "Civil proceeding advance payment contract", or "CPAPcontract", has the meaning set forth in IC 24-4.5-3-110.5.

(49) "Civil proceeding advance payment provider", or "CPAPprovider", has the meaning set forth in IC 24-4.5-3-110.5.

(50) "Consumer claimant", with respect to a CPAP transaction, hasthe meaning set forth in IC 24-4.5-3-110.5.

(51) "Funded amount", with respect to a CPAP transaction, has themeaning set forth in IC 24-4.5-3-110.5.

SECTION 7. IC 24-4.5-1-302 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 302. Federal ConsumerCredit Protection Act — In this article, "Federal "Consumer CreditProtection Act" means the Consumer Credit Protection Act (PublicLaw 90-321; 82 Stat. 146), (15 U.S.C. 1601 et seq.), as amended, andincludes both the Truth in Lending Simplification and Reform Actamendments (Public Law 96-221, Title VI, 94 Stat. 168) and anyregulations issued pursuant to under those laws. However, thedepartment may otherwise define this term by rule issued in accordancewith IC 24-4.5-6-107.

SECTION 8. IC 24-4.5-2-202, AS AMENDED BY P.L.89-2011,SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 202. (1) In addition to the credit service chargepermitted by IC 24-4.5-2-201 through IC 24-4.5-2-210, this chapter,a seller may contract for and receive any of the following additionalcharges in connection with a consumer credit sale:

(a) Official fees and taxes.(b) Charges for insurance as described in subsection (2).(c) Notwithstanding provisions of the Federal Consumer CreditProtection Act (15 U.S.C. 1601 et seq.) concerning disclosure,charges for other benefits, including insurance, conferred on thebuyer, if the benefits are of value to the buyer and if the chargesare reasonable in relation to the benefits, and are excluded aspermissible additional charges from the credit service charge.With respect to any additional charge not specifically provided forin this section, to be a permitted charge under this subsection theseller must submit a written explanation of the charge to the

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department indicating how the charge would be assessed and thevalue or benefit to the buyer. Supporting documents may berequired by the department. The department shall determinewhether the charge would be of benefit to the buyer and isreasonable in relation to the benefits.(d) A charge not to exceed twenty-five dollars ($25) for eachreturn by a bank or other depository institution of a dishonoredcheck, negotiable order of withdrawal, or share draft issued by thedebtor.(e) Annual participation fees assessed in connection with arevolving charge account. Annual participation fees must:

(i) be reasonable in amount;(ii) bear a reasonable relationship to the seller's costs tomaintain and monitor the charge account; and(iii) not be assessed for the purpose of circumvention orevasion of this article, as determined by the department.

(2) An additional charge may be made for insurance written inconnection with the sale, other than insurance protecting the selleragainst the buyer's default or other credit loss:

(a) with respect to insurance against loss of or damage toproperty, or against liability, if the seller furnishes a clear andspecific statement in writing to the buyer, setting forth the cost ofthe insurance if obtained from or through the seller and statingthat the buyer may choose the person, subject to the seller'sreasonable approval, through whom the insurance is to beobtained; and(b) with respect to consumer credit insurance providing life,accident, unemployment or other loss of income, or healthcoverage, if the insurance coverage is not a factor in the approvalby the seller of the extension of credit and is clearly disclosed inwriting to the buyer, and if, in order to obtain the insurance inconnection with the extension of credit, the buyer gives specific,affirmative, written indication of the desire to do so after writtendisclosure of the cost.

(3) With respect to a subordinate lien mortgage transaction, thefollowing closing costs, if the costs are bona fide, reasonable inamount, and not for the purpose of circumvention or evasion of thisarticle:

(a) fees for title examination, abstract of title, title insurance,property surveys, or similar purposes;(b) fees for preparing deeds, mortgages, and reconveyance,settlement, and similar documents;

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(c) notary and credit report fees;(d) amounts required to be paid into escrow or trustee accounts ifthe amounts would not otherwise be included in the credit servicecharge; and(e) appraisal fees.

SECTION 9. IC 24-4.5-2-301, AS AMENDED BY P.L.35-2010,SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 301. (1) For purposes of this section, "consumercredit sale" includes the a sale that is a sale of an interest in landwhich and that is a first lien mortgage transaction if the sale isotherwise a consumer credit sale (IC 24-4.5-1-301.5(8)).

(2) The seller shall disclose to the buyer to whom credit is extendedwith respect to a consumer credit sale, and the lessor shall disclose tothe lessee with respect to a consumer lease, the information required bythe Federal Consumer Credit Protection Act (15 U.S.C. 1601 et seq.).

(3) For purposes of subsection (2), disclosures shall not be requiredon a consumer credit sale if the transaction is exempt from the FederalConsumer Credit Protection Act (15 U.S.C. 1601 et seq.).

SECTION 10. IC 24-4.5-3-201, AS AMENDED BY P.L.91-2013,SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 201. Loan Finance Charge for Consumer Loansother than Supervised Loans—(1) Except as provided in subsections(6) and (8), with respect to a consumer loan other than a supervisedloan (as defined in section 501 of this chapter), a lender may contractfor a loan finance charge, calculated according to the actuarial method,not exceeding twenty-five percent (25%) per year on the unpaidbalances of the principal.

(2) This section does not limit or restrict the manner of contractingfor the loan finance charge, whether by way of add-on, discount, orotherwise, so long as the rate of the loan finance charge does notexceed that permitted by this section. If the loan is precomputed:

(a) the loan finance charge may be calculated on the assumptionthat all scheduled payments will be made when due; and(b) the effect of prepayment is governed by the provisions onrebate upon prepayment in section 210 of this chapter.

(3) For the purposes of this section, the term of a loan commenceswith the date the loan is made. Differences in the lengths of months aredisregarded, and a day may be counted as one-thirtieth (1/30) of amonth. Subject to classifications and differentiations the lender mayreasonably establish, a part of a month in excess of fifteen (15) daysmay be treated as a full month if periods of fifteen (15) days or less aredisregarded and if that procedure is not consistently used to obtain a

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greater yield than would otherwise be permitted. For purposes ofcomputing average daily balances, the creditor may elect to treat allmonths as consisting of thirty (30) days.

(4) With respect to a consumer loan made pursuant to a revolvingloan account:

(a) the loan finance charge shall be deemed not to exceed themaximum annual percentage rate if the loan finance chargecontracted for and received does not exceed a charge in eachmonthly billing cycle which is two and eighty-three thousandthspercent (2.083%) of an amount not greater than:

(i) the average daily balance of the debt;(ii) the unpaid balance of the debt on the same day of thebilling cycle; or(iii) subject to subsection (5), the median amount within aspecified range within which the average daily balance or theunpaid balance of the debt, on the same day of the billingcycle, is included; for the purposes of this subparagraph andsubparagraph (ii), a variation of not more than four (4) daysfrom month to month is "the same day of the billing cycle";

(b) if the billing cycle is not monthly, the loan finance chargeshall be deemed not to exceed the maximum annual percentagerate if the loan finance charge contracted for and received doesnot exceed a percentage which bears the same relation toone-twelfth (1/12) the maximum annual percentage rate as thenumber of days in the billing cycle bears to thirty (30); and(c) notwithstanding subsection (1), if there is an unpaid balanceon the date as of which the loan finance charge is applied, thelender may contract for and receive a charge not exceeding fiftycents ($0.50) if the billing cycle is monthly or longer, or the prorata part of fifty cents ($0.50) which bears the same relation tofifty cents ($0.50) as the number of days in the billing cycle bearsto thirty (30) if the billing cycle is shorter than monthly, but nocharge may be made pursuant to this paragraph if the lender hasmade an annual charge for the same period as permitted by theprovisions on additional charges in section 202(1)(c) of thischapter.

(5) Subject to classifications and differentiations the lender mayreasonably establish, the lender may make the same loan financecharge on all amounts financed within a specified range. A loan financecharge does not violate subsection (1) if:

(a) when applied to the median amount within each range, it doesnot exceed the maximum permitted by subsection (1); and

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(b) when applied to the lowest amount within each range, it doesnot produce a rate of loan finance charge exceeding the ratecalculated according to paragraph (a) by more than eight percent(8%) of the rate calculated according to paragraph (a).

(6) With respect to a consumer loan not made pursuant to arevolving loan account, the lender may contract for and receive aminimum loan finance charge of not more than thirty dollars ($30). Theminimum loan finance charge allowed under this subsection may beimposed only if the lender does not assess a loan origination feenonrefundable prepaid finance charge under subsection (8) and:

(a) the debtor prepays in full a consumer loan, refinancing, orconsolidation, regardless of whether the loan, refinancing, orconsolidation is precomputed;(b) the loan, refinancing, or consolidation prepaid by the debtoris subject to a loan finance charge that:

(i) is contracted for by the parties; and(ii) does not exceed the rate prescribed in subsection (1); and

(c) the loan finance charge earned at the time of prepayment isless than the minimum loan finance charge contracted for underthis subsection.

(7) The amount of thirty dollars ($30) in subsection (6) is subject tochange under the provisions on adjustment of dollar amounts(IC 24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), theReference Base Index to be used under this subsection is the Index forOctober 1992.

(8) Except as provided in subsection (6), in addition to the loanfinance charge provided for in this section and to any other charges andfees permitted by this chapter, a lender may contract for and receive aloan origination fee nonrefundable prepaid finance charge of notmore than the following:

(a) In the case of a consumer loan that is secured by an interest inland and that:

(i) is not made under a revolving loan account, two percent(2%) of the loan amount; or(ii) is made under a revolving loan account, two percent (2%)of the line of credit.

(b) In the case of consumer loan that is not secured by an interestin land, fifty dollars ($50).

(9) The loan origination fee nonrefundable prepaid financecharge provided for in subsection (8) is not subject to refund or rebate.

(10) Notwithstanding subsections (8) and (9), in the case of aconsumer loan that is not secured by an interest in land, if a lender

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retains any part of a loan origination fee nonrefundable prepaidfinance charge charged on a loan that is paid in full by a new loanfrom the same lender, the following apply:

(a) If the loan is paid in full by the new loan within three (3)months after the date of the prior loan, the lender may not chargea loan origination fee nonrefundable prepaid finance charge onthe new loan, or, in the case of a revolving loan, on the increasedcredit line.(b) The lender may not assess more than two (2) loan originationfees nonrefundable prepaid finance charges in any twelve (12)month period.

(11) In the case of a consumer loan that is secured by an interest inland, this section does not prohibit a lender from contracting for andreceiving a fee for preparing deeds, mortgages, reconveyances, andsimilar documents under section 202(1)(d)(ii) of this chapter, inaddition to the loan origination fee nonrefundable prepaid financecharge provided for in subsection (8).

SECTION 11. IC 24-4.5-3-202, AS AMENDED BY P.L.153-2016,SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 202. (1) In addition to the loan finance chargepermitted by IC 24-4.5-3-201 through IC 24-4.5-3-210, this chapter,a lender may contract for and receive the following additional chargesin connection with a consumer loan:

(a) Official fees and taxes.(b) Charges for insurance as described in subsection (2).(c) Annual participation fees assessed in connection with arevolving loan account. Annual participation fees must:

(i) be reasonable in amount;(ii) bear a reasonable relationship to the lender's costs tomaintain and monitor the loan account; and(iii) not be assessed for the purpose of circumvention orevasion of this article, as determined by the department.

(d) With respect to a debt secured by an interest in land, thefollowing closing costs, if they are bona fide, reasonable inamount, and not for the purpose of circumvention or evasion ofthis article:

(i) Fees for title examination, abstract of title, title insurance,property surveys, or similar purposes.(ii) Fees for preparing deeds, mortgages, and reconveyance,settlement, and similar documents.(iii) Notary and credit report fees.(iv) Amounts required to be paid into escrow or trustee

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accounts if the amounts would not otherwise be included inthe loan finance charge.(v) Appraisal fees.

(e) Notwithstanding provisions of the Federal Consumer CreditProtection Act (15 U.S.C. 1601 et seq.) concerning disclosure,charges for other benefits, including insurance, conferred on thedebtor, if the benefits are of value to the debtor and if the chargesare reasonable in relation to the benefits, and are excluded aspermissible additional charges from the loan finance charge. Withrespect to any other additional charge not specifically providedfor in this section to be a permitted charge under this subsection,the creditor must submit a written explanation of the charge to thedepartment indicating how the charge would be assessed and thevalue or benefit to the debtor. Supporting documents may berequired by the department. The department shall determinewhether the charge would be of benefit to the debtor and isreasonable in relation to the benefits.(f) A charge not to exceed twenty-five dollars ($25) for eachreturn by a bank or other depository institution of a dishonoredcheck, negotiable order of withdrawal, or share draft issued by thedebtor.(g) With respect to a revolving loan account, a fee not to exceedtwenty-five dollars ($25) in each billing cycle during which thebalance due under the revolving loan account exceeds by morethan one hundred dollars ($100) the maximum credit limit for theaccount established by the lender.(h) With respect to a revolving loan account, a transaction fee thatmay not exceed the lesser of the following:

(i) Two percent (2%) of the amount of the transaction.(ii) Ten dollars ($10).

(i) This subdivision applies to a CPAP transaction offered orentered into after June 30, 2016. With respect to a CPAPtransaction, a CPAP provider may impose the following chargesand fees:

(i) A fee calculated at an annual rate that does not exceedthirty-six percent (36%) of the funded amount.(ii) A servicing charge calculated at an annual rate that doesnot exceed seven percent (7%) of the funded amount.(iii) If the funded amount of the CPAP transaction is less thanfive thousand dollars ($5,000), a one (1) time charge that doesnot exceed two hundred fifty dollars ($250) for obtaining andpreparing documents.

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(iv) If the funded amount of the CPAP transaction is at leastfive thousand dollars ($5,000), a one (1) time charge that doesnot exceed five hundred dollars ($500) for obtaining andpreparing documents.

A CPAP provider may not assess, or collect from the consumerclaimant, any other fee or charge in connection with a CPAPtransaction, including any finance charges under section 201 or508 of this chapter.

The additional charges provided for in subdivisions (f), (g), (h), and (i)are not subject to refund or rebate.

(2) An additional charge may be made for insurance in connectionwith the loan, other than insurance protecting the lender against thedebtor's default or other credit loss:

(a) with respect to insurance against loss of or damage to propertyor against liability, if the lender furnishes a clear and specificstatement in writing to the debtor, setting forth the cost of theinsurance if obtained from or through the lender and stating thatthe debtor may choose the person, subject to the lender'sreasonable approval, through whom the insurance is to beobtained; and(b) with respect to consumer credit insurance providing life,accident, unemployment or other loss of income, or healthcoverage, if the insurance coverage is not a factor in the approvalby the lender of the extension of credit and this fact is clearlydisclosed in writing to the debtor, and if, in order to obtain theinsurance in connection with the extension of credit, the debtorgives specific affirmative written indication of the desire to do soafter written disclosure of the cost of the insurance.

SECTION 12. IC 24-4.5-3-209, AS AMENDED BY P.L.73-2016,SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 209. Right to Prepay - (1) Subject to theprovisions on rebate upon prepayment (section 210 of this chapter), thedebtor may prepay in full the unpaid balance of a consumer loan,refinancing, or consolidation at any time without penalty. With respectto a consumer loan that is primarily secured by an interest in land, alender may contract for a penalty for prepayment of the loan in full, notto exceed two percent (2%) of any amount prepaid within sixty (60)days of the date of the prepayment in full, after deducting all refundsand rebates as of the date of the prepayment. However, the penalty maynot be imposed:

(a) if the loan is refinanced or consolidated with the samecreditor;

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(b) for prepayment by proceeds of any insurance or accelerationafter default; or(c) after three (3) years from the contract date.

For purposes of this section, the collection of the amount of anyconditionally waived closing costs (as allowed under section 202(d)of this chapter) by a creditor, as stipulated in the loan agreement,at the time of prepayment in full does not constitute a prepaymentpenalty and is not subject to the limitations set forth in thissubsection.

(2) At the time of prepayment of a consumer loan not subject to theprovisions of rebate upon prepayment (section 210 of this chapter), thetotal finance charge, including the prepaid finance charge butexcluding the loan origination fee nonrefundable prepaid financecharge allowed under this chapter, may not exceed the maximumcharge allowed under this chapter for the period the loan was in effect.For the purposes of determining compliance with this subsection, thetotal finance charge does not include the following:

(a) The loan origination fee nonrefundable prepaid financecharge allowed under this chapter.(b) The debtor paid mortgage broker fee, if any, paid to a personwho does not control, is not controlled by, or is not undercommon control with, the creditor holding the loan at the time aconsumer loan is prepaid.

(3) The creditor or mortgage servicer shall provide, in writing, anaccurate payoff amount for the consumer loan to the debtor withinseven (7) business days (excluding legal public holidays, Saturdays,and Sundays) after the creditor or mortgage servicer receives thedebtor's written request for the accurate consumer loan payoff amount.A payoff statement provided by a creditor or mortgage servicer underthis subsection must show the date the statement was prepared anditemize the unpaid principal balance and each fee, charge, or other sumincluded within the payoff amount. A creditor or mortgage servicerwho fails to provide the accurate consumer loan payoff amount is liablefor:

(a) one hundred dollars ($100) if an accurate consumer loanpayoff amount is not provided by the creditor or mortgageservicer within seven (7) business days (excluding legal publicholidays, Saturdays, and Sundays) after the creditor or mortgageservicer receives the debtor's first written request; and(b) the greater of:

(i) one hundred dollars ($100); or(ii) the loan finance charge that accrues on the loan from the

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date the creditor or mortgage servicer receives the first writtenrequest until the date on which the accurate consumer loanpayoff amount is provided;

if an accurate consumer loan payoff amount is not provided by thecreditor or mortgage servicer within seven (7) business days(excluding legal public holidays, Saturdays, and Sundays) afterthe creditor or mortgage servicer receives the debtor's secondwritten request, and the creditor or mortgage servicer failed tocomply with subdivision (a).

A liability under this subsection is an excess charge underIC 24-4.5-5-202.

(4) As used in this subsection, "mortgage transaction" means aconsumer loan in which a mortgage or a land contract (or anotherconsensual security interest equivalent to a mortgage or a land contract)that constitutes a lien is created or retained against land upon whichthere is constructed or intended to be constructed a dwelling that is orwill be used by the debtor primarily for personal, family, or householdpurposes. This subsection applies to a mortgage transaction withrespect to which any installment or minimum payment due isdelinquent for at least sixty (60) days. The creditor, servicer, or thecreditor's agent shall acknowledge a written offer made in connectionwith a proposed short sale not later than five (5) business days(excluding legal public holidays, Saturdays, and Sundays) after the dateof the offer if the offer complies with the requirements for a qualifiedwritten request set forth in 12 U.S.C. 2605(e)(1)(B). The creditor,servicer, or creditor's agent is required to acknowledge a written offermade in connection with a proposed short sale from a third party actingon behalf of the debtor only if the debtor has provided writtenauthorization for the creditor, servicer, or creditor's agent to do so. Notlater than thirty (30) business days (excluding legal public holidays,Saturdays, and Sundays) after receipt of an offer under this subsection,the creditor, servicer, or creditor's agent shall respond to the offer withan acceptance or a rejection of the offer. The thirty (30) day perioddescribed in this subsection may be extended for not more than fifteen(15) business days (excluding legal public holidays, Saturdays, andSundays) if, before the end of the thirty (30) day period, the creditor,the servicer, or the creditor's agent notifies the debtor of the extensionand the reason the extension is needed. Payment accepted by a creditor,servicer, or creditor's agent in connection with a short sale constitutespayment in full satisfaction of the mortgage transaction unless thecreditor, servicer, or creditor's agent obtains:

(a) the following statement: "The debtor remains liable for any

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amount still owed under the mortgage transaction."; or(b) a statement substantially similar to the statement set forth insubdivision (a);

acknowledged by the initials or signature of the debtor, on or before thedate on which the short sale payment is accepted. As used in thissubsection, "short sale" means a transaction in which the property thatis the subject of a mortgage transaction is sold for an amount that isless than the amount of the debtor's outstanding obligation under themortgage transaction. A creditor or mortgage servicer that fails torespond to an offer within the time prescribed by this subsection isliable in accordance with 12 U.S.C. 2605(f) in any action broughtunder that section.

(5) This section is not intended to provide the owner of real estatesubject to the issuance of process under a judgment or decree offoreclosure any protection or defense against a deficiency judgment forpurposes of the borrower protections from liability that must bedisclosed under 12 CFR 1026.38(p)(3) on the form required by 12 CFR1026.38 ("Closing Disclosures" form under the Amendments to the2013 Integrated Mortgage Disclosures Rule Under the Real EstateSettlement Procedures Act (Regulation X) and the Truth In LendingAct (Regulation Z) and the 2013 Loan Originator Rule Under the Truthin Lending Act (Regulation Z)).

SECTION 13. IC 24-4.5-3-301, AS AMENDED BY P.L.35-2010,SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 301. (1) For the purposes of this section,"consumer loan" includes a loan that is a first lien mortgage transactionif the loan is otherwise a consumer loan (IC 24-4.5-1-301.5(9)).

(2) The lender shall disclose to the debtor to whom credit isextended with respect to a consumer loan the information required bythe Federal Consumer Credit Protection Act (15 U.S.C. 1601 et seq.).

(3) For purposes of subsection (2), disclosures shall not be requiredon a consumer loan if the transaction is exempt from the FederalConsumer Credit Protection Act (15 U.S.C. 1601 et seq.).

SECTION 14. IC 24-4.5-3-508, AS AMENDED BY P.L.91-2013,SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 508. Loan Finance Charge for Supervised Loans) (1) With respect to a supervised loan, including a loan pursuant to arevolving loan account, a supervised lender may contract for andreceive a loan finance charge not exceeding that permitted by thissection.

(2) The loan finance charge, calculated according to the actuarialmethod, may not exceed the equivalent of the greater of:

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(a) the total of:(i) thirty-six percent (36%) per year on that part of the unpaidbalances of the principal which is two thousand dollars($2,000) or less;(ii) twenty-one percent (21%) per year on that part of theunpaid balances of the principal which is more than twothousand dollars ($2,000) but does not exceed four thousanddollars ($4,000); and(iii) fifteen percent (15%) per year on that part of the unpaidbalances of the principal which is more than four thousanddollars ($4,000); or

(b) twenty-five percent (25%) per year on the unpaid balances ofthe principal.

(3) This section does not limit or restrict the manner of contractingfor the loan finance charge, whether by way of add-on, discount, orotherwise, so long as the rate of the loan finance charge does notexceed that permitted by this section. If the loan is precomputed:

(a) the loan finance charge may be calculated on the assumptionthat all scheduled payments will be made when due; and(b) the effect of prepayment is governed by the provisions onrebate upon prepayment in section 210 of this chapter.

(4) The term of a loan for the purposes of this section commenceson the date the loan is made. Differences in the lengths of months aredisregarded, and a day may be counted as one-thirtieth (1/30) of amonth. Subject to classifications and differentiations the lender mayreasonably establish, a part of a month in excess of fifteen (15) daysmay be treated as a full month if periods of fifteen (15) days or less aredisregarded and that procedure is not consistently used to obtain agreater yield than would otherwise be permitted.

(5) Subject to classifications and differentiations the lender mayreasonably establish, the lender may make the same loan financecharge on all principal amounts within a specified range. A loanfinance charge does not violate subsection (2) if:

(a) when applied to the median amount within each range, it doesnot exceed the maximum permitted in subsection (2); and(b) when applied to the lowest amount within each range, it doesnot produce a rate of loan finance charge exceeding the ratecalculated according to paragraph (a) by more than eight percent(8%) of the rate calculated according to paragraph (a).

(6) The amounts of two thousand dollars ($2,000) and four thousanddollars ($4,000) in subsection (2) and thirty dollars ($30) in subsection(7) are subject to change pursuant to the provisions on adjustment of

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dollar amounts (IC 24-4.5-1-106). However, notwithstandingIC 24-4.5-1-106(1), for the adjustment of the amount of thirty dollars($30), the Reference Base Index to be used is the Index for October1992. Notwithstanding IC 24-4.5-1-106(1), for the adjustment of theamounts of two thousand dollars ($2,000) and four thousand dollars($4,000), the Reference Base Index to be used is the Index for October2012.

(7) With respect to a supervised loan not made pursuant to arevolving loan account, the lender may contract for and receive aminimum loan finance charge of not more than thirty dollars ($30). Theminimum loan finance charge allowed under this subsection may beimposed only if the lender does not assess a loan origination feenonrefundable prepaid finance charge under subsection (8) and:

(a) the debtor prepays in full a consumer loan, refinancing, orconsolidation, regardless of whether the loan, refinancing, orconsolidation is precomputed;(b) the loan, refinancing, or consolidation prepaid by the debtoris subject to a loan finance charge that:

(i) is contracted for by the parties; and(ii) does not exceed the rate prescribed in subsection (2); and

(c) the loan finance charge earned at the time of prepayment isless than the minimum loan finance charge contracted for underthis subsection.

(8) Except as provided in subsection (7), in addition to the loanfinance charge provided for in this section and to any other charges andfees permitted by this chapter, the lender may contract for and receivea loan origination fee nonrefundable prepaid finance charge of notmore than fifty dollars ($50).

(9) The loan origination fee nonrefundable prepaid financecharge provided for in subsection (8) is not subject to refund or rebate.

(10) Notwithstanding subsections (8) and (9), in the case of asupervised loan that is not secured by an interest in land, if a lenderretains any part of a loan origination fee nonrefundable prepaidfinance charge charged on a loan that is paid in full by a new loanfrom the same lender, the following apply:

(a) If the loan is paid in full by the new loan within three (3)months after the date of the prior loan, the lender may not chargea loan origination fee nonrefundable prepaid finance charge onthe new loan, or, in the case of a revolving loan, on the increasedcredit line.(b) The lender may not assess more than two (2) loan originationfees nonrefundable prepaid finance charges in any twelve (12)

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month period.(11) In the case of a supervised loan that is secured by an interest in

land, this section does not prohibit a lender from contracting for andreceiving a fee for preparing deeds, mortgages, reconveyances, andsimilar documents under section 202(1)(d)(ii) of this chapter, inaddition to the loan origination fee nonrefundable prepaid financecharge provided for in subsection (8).

SECTION 15. IC 24-4.5-3-512 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 512. Conduct ofBusiness Other than Making Loans — A licensee may carry on otherbusiness at a location where he the licensee makes consumer loansunless he the licensee carries on other business for the purpose ofevasion or violation of this article.

SECTION 16. IC 24-4.5-5-203 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 203. Civil Liability forViolation of Disclosure Provisions — (1) Except as otherwise providedin this section, a creditor who, in violation of the provisions ondisclosure (Part 3) of the Chapter on Credit Sales (Chapter 2) inIC 24-4.5-2 and the Chapter on Loans (Chapter 3), IC 24-4.5-3, failsto disclose information to a person entitled to the information underthis article is liable to that person in an amount equal to the sum of:

(a) the following:(1) in the case of an individual action, twice the amount of thecredit service or loan finance charge in connection with thetransaction, but the liability pursuant to this subdivision shall benot less than one hundred dollars ($100) nor more than onethousand dollars ($1,000); or(2) in the case of a class action, an amount the court allows,except that as to each member of the class no minimum recoveryis applicable, and the total recovery under this subdivision in anyclass action or series of class actions arising out of the samefailure to comply by the same creditor may not be more than thelesser of:

(i) five hundred thousand dollars ($500,000); or(ii) one percent (1%) of the net worth of the creditor; and

(b) in the case of a successful action to enforce the liability underparagraph (a), the costs of the action together with reasonable attorney'sfees as determined by the court. In determining the amount of theaward in a class action, the court shall consider, among other relevantfactors, the amount of any award granted under the federal ConsumerCredit Protection Act (15 U.S.C. 1601 et seq.), the frequency andpersistence of failures of compliance by the creditor, the resources of

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the creditor, the number of persons adversely affected, and the extentto which the creditor's failure of compliance was intentional.

(2) A creditor has no liability under this section if within sixty (60)days after discovering an error, and prior to the institution of an actionunder this section or the receipt of written notice of the error, thecreditor notifies the person concerned of the error and makes whateveradjustments in the appropriate account are necessary to assure that theperson will not be required to pay a credit service charge or loanfinance charge in excess of the amount or percentage rate actuallydisclosed.

(3) A creditor may not be held liable in any action brought underthis section for a violation of this article if the creditor shows by apreponderance of evidence that the violation was not intentional andresulted from a bona fide error notwithstanding the maintenance ofprocedures reasonably adapted to avoid the error.

(4) If there are multiple obligors in a consumer credit transaction orconsumer lease, there may not be more than one (1) recovery ofdamages under subdivision (a)(1) for one (1) violation of this articlewith respect to that consumer credit transaction or consumer lease.

(5) The multiple failure to disclose to any person any informationrequired under this article to be disclosed in connection with a singleaccount under an open end consumer credit plan, a single consumercredit sale, a consumer loan, a consumer lease, or another extension ofconsumer credit entitles that person to a single recovery under thissection. However, continued failure to disclose after a recovery hasbeen granted gives rise to rights to additional recoveries.

(6) Any action which may be brought under this section against theoriginal creditor in any credit transaction involving a security interestin land may be maintained against any subsequent assignee of theoriginal creditor where the assignee, its subsidiaries, or affiliates werein a continuing business relationship with the original creditor either atthe time the credit was extended or at the time of the assignment,unless the assignment was involuntary, or the assignee shows by apreponderance of evidence that it did not have reasonable grounds tobelieve that the original creditor was engaged in violations of thisarticle, and that it maintained procedures reasonably adapted to appriseit of the existence of the violations.

(7) No action pursuant to this section may be brought more than one(1) year after the date of the occurrence of the violations.

(8) In this section, creditor includes a person who in the ordinarycourse of business regularly extends or arranges for the extension ofcredit, or offers to arrange for the extension of credit.

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SECTION 17. IC 24-4.5-5-204 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 204. Debtor's Right toRescind Certain Transactions — (1) A violation by a creditor ofSection 125 of the Federal Consumer Credit Protection Act (as definedin IC 24-4.5-1-302) concerning the debtor's right to rescind atransaction that is a consumer credit sale or a consumer loan constitutesa violation of IC 24-4.5. A creditor may not accrue interest during theperiod when a consumer loan may be rescinded under Section 125 ofthe Federal Consumer Protection Act (15 U.S.C. 1635).

(2) A creditor must make available for disbursement the proceedsof a transaction subject to subsection (1) on the later of:

(A) the date the creditor is reasonably satisfied that the consumerhas not rescinded the transaction; or(B) the first business day after the expiration of the rescissionperiod under subsection (1).

SECTION 18. IC 24-4.5-7-301, AS AMENDED BY P.L.35-2010,SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 301. (1) For purposes of this section, the lendershall disclose to the borrower to whom credit is extended with respectto a small loan the information required by the Federal ConsumerCredit Protection Act (15 U.S.C. 1601 et seq.).

(2) In addition to the requirements of subsection (1), the lender mustconspicuously display in bold type a notice to the public both in thelending area of each business location and in the loan documents thefollowing statement:

"WARNING: A small loan is not intended to meet long termfinancial needs. A small loan should be used only to meet shortterm cash needs. The cost of your small loan may be higher thanloans offered by other lending institutions. Small loans areregulated by the State of Indiana Department of FinancialInstitutions.A borrower may rescind a small loan without cost by paying thecash amount of the principal of the small loan to the lender notlater than the end of the business day immediately following theday on which the small loan was made.".

(3) The statement required in subsection (2) must be in:(a) 14 point bold face type in the loan documents; and(b) not less than one (1) inch bold print in the lending area of thebusiness location.

(4) When a borrower enters into a small loan, the lender shallprovide the borrower with a pamphlet approved by the department thatdescribes:

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(a) the availability of debt management and credit counselingservices; and(b) the borrower's rights and responsibilities in the transaction.

SECTION 19. IC 24-4.5-7-405 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 405. (1) This sectiondoes not apply to a business that is licensed by the department for apurpose other than consumer loans.

(2) A lender shall not conduct the business of making small loansunder this chapter within an office, suite, room, or place of businesswhere another business is solicited or engaged unless the lender obtainsa written opinion from the director of the department that the licenseemay carry on other business would not be contrary to the best interestsof consumers. at a location where the licensee makes small loansunless the licensee carries on other business for the purpose ofevasion or violation of this article.

SECTION 20. IC 24-7-1-2 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 2. Except as providedin this article, the provisions of:

(1) the Federal Consumer Credit Protection Act (15 U.S.C. 1601et seq.) and regulations adopted under it; that act;(2) IC 24-4.5;(3) IC 26-1-1-201(37);(4) IC 26-1-2 concerning the creation of a security interest inproperty;(5) IC 26-1-9.1; and(6) rules adopted under the statutes described in subdivisions (2)through (5);

do not apply to a rental purchase agreement.SECTION 21. IC 24-7-2-2.5 IS ADDED TO THE INDIANA CODE

AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY1, 2017]: Sec. 2.5. "Consumer Credit Protection Act" has themeaning set forth in IC 24-4.5-1-302.

SECTION 22. IC 24-7-2-4 IS REPEALED [EFFECTIVE JULY 1,2017]. Sec. 4. "Federal Consumer Credit Protection Act" has themeaning set forth in IC 24-4.5-1-302.

SECTION 23. IC 24-7-3-2 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 2. A lessor shalldisclose to a lessee the information required under section 3 of thischapter. However, if the Federal Consumer Credit Protection Act (15U.S.C. 1601 et seq.) is amended to govern lease-purchase disclosures,the lessor may disclose the information required under the FederalConsumer Credit Protection Act (15 U.S.C. 1601 et seq.) instead of the

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disclosures required under this chapter. SECTION 24. IC 25-11-1-2 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 2. The term "collectionagency" does not include the following:

(a) Attorney at law.(b) Persons regularly employed on a regular wage or salary in thecapacity of credit men or in a similar capacity except as anindependent contractor.(c) Banks, including trust departments, fiduciaries, and financialinstitutions; including licensees under IC 24-4.4 and IC 24-4.5;and licensees under IC 28-5-1.(d) Licensed real estate brokers.(e) Employees of licensees under this chapter.(f) Any person, firm, partnership, limited liability company, orcorporation engaged in any business enterprise in the state whoseprimary object, business, or pursuit is not the collection of claims,as the term is defined by the provisions of this chapter.(g) Any electric, gas, water, and or telephone public utilities, theirutility and its respective employees, agents, representativeagents, representatives, and individual contractors.(h) Any express company regulated under IC 8-2.1 or IC 8-3.

SECTION 25. IC 28-1-8-0.5 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 0.5. As used in thischapter, "corporation" means:

(1) a bank;(2) a trust company;(3) a corporate fiduciary;(4) a savings bank;(5) a savings association; or(6) an industrial loan and investment company that maintainsfederal deposit insurance; or(7) a credit union.

SECTION 26. IC 28-1-8-0.7, AS AMENDED BY P.L.13-2013,SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 0.7. As used in this chapter, "shareholder", withrespect to a:

(1) mutual savings bank; or(2) mutual savings association; or(3) credit union;

refers to a member of the mutual savings bank, or mutual savingsassociation, or credit union, as applicable.

SECTION 27. IC 28-1-8-2, AS AMENDED BY P.L.27-2012,

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SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 2. (a) A sale, lease, exchange, or other dispositiondescribed in section 1 of this chapter must first be proposed by theboard of directors by the adoption of a resolution that:

(1) sets forth the terms and conditions of the sale, lease, exchange,or other disposition; and(2) directs that the proposed disposition be submitted to a vote ofthe shareholders at the annual meeting or a special meeting.

(b) The meeting described in subsection (a)(2) shall:(1) be called by in the resolution and notice of the meeting shallrequired by subsection (a); and(2) be given in the manner provided in accordance with:

(A) IC 28-13-5-8, in the case of a corporation other than acredit union; and(B) IC 28-7-1-14, in the case of a credit union.

SECTION 28. IC 28-1-8-3, AS AMENDED BY P.L.27-2012,SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 3. (a) Before a proposed disposition described insection 1 of this chapter is submitted to a vote of the shareholders, theresolution proposing the disposition shall be submitted for the approvalof the department.

(b) Subject to section 5(c) 5(d) of this chapter, and any approvalsrequired under federal law, the department may approve a resolutionif the corporation has and will have assets in excess of the corporation'sliabilities and either of the following applies:

(1) The corporation intends to merge out of existence underIC 28-1-7-1 or IC 28-7-1-33, as applicable.(2) The corporation intends to voluntarily dissolve underIC 28-1-9 or IC 28-7-1-27.1, as applicable.

(c) An officer or a director of a corporation whose proposeddisposition is approved by the department under subsection (b) may notnegotiate for or receive any economic benefit in connection with anysale of assets under this chapter, except for:

(1) compensation and other benefits paid to the officer or directorand to officers and directors of the purchasing institution in theordinary course of business;(2) any economic benefit realized by all shareholders as a resultof the disposition; or(3) any economic benefit received as part of a compensation orbenefit plan existing at the time of the disposition and approvedbefore the initiation of sale negotiations.

(d) If the department approves a resolution submitted under this

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section, the department shall:(1) write or stamp on the resolution:

(A) the words "Approved by the Department of FinancialInstitutions of the State of Indiana"; and(B) the date of the approval; and

(2) place the impression of the seal of the department and thesignature of the director or the director's authorized designeebeneath the approval stamp.

SECTION 29. IC 28-1-8-4 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 4. If a resolutionproposing a disposition described in section 1 of this chapter isapproved by the department, the resolution may then be submitted tothe shareholders at the annual meeting or a special meeting. Theresolution shall be authorized upon receiving the affirmative votes oftwo-thirds (2/3) of the outstanding shares. However, the departmentmay permit the resolution to be authorized without receivingshareholder approval if the corporation whose assets are to bedisposed of is in danger of insolvency.

SECTION 30. IC 28-1-8-5, AS AMENDED BY P.L.27-2012,SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 5. (a) This section does not apply to ashareholder of a credit union that is the subject of a proposedtransaction concerning the sale, lease, exchange, or otherdisposition of the credit union's property or assets under thischapter.

(a) (b) Subject to subsection (c), (d), the rights of dissentingshareholders in the case of a merger or consolidation, as set forth inIC 28-1-7-21, apply to the sale, lease, exchange, or other disposition ofthe property and assets of a corporation under this chapter. Anydissenting shareholder shall have such rights and remedies as providedfor in IC 28-1-7-21.

(b) (c) For purposes of the application of IC 28-1-7-21 to thischapter, the "effective date" of a sale, lease, exchange, or otherdisposition under this chapter, within the meaning of IC 28-1-7-21, isthe date upon which the disposition was authorized by the shareholdersof the corporation.

(c) (d) In a proposed disposition described in section 3(b) of thischapter, if the corporation that is the subject of the proposeddisposition is a mutual savings bank or a mutual savings association,the rights and remedies for dissenting shareholders set forth inIC 28-1-7-21 do not apply.

SECTION 31. IC 28-1-11-4, AS AMENDED BY P.L.186-2015,

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SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 4. (a) Except as otherwise provided in this article,the business of dealing in investment securities by any bank or trustcompany is limited to purchasing and selling securities withoutrecourse, solely upon the order and for the account of customers and inno event for its own account. A bank or trust company may notunderwrite or guarantee all or any part of any issue of securities otherthan obligations issued or guaranteed by or on behalf of the state or anypolitical subdivision of the state or any agency or instrumentality ofeither. A bank or trust company may purchase for its own account andsell investment securities under such limitations and restrictions as thedepartment prescribes by regulation, rule, policy, or guidance, but in noevent may the total amount of the investment securities of any one (1)obligor or maker, purchased or held by a bank or trust company for itsown account, exceed at any time ten percent (10%) of the amount ofthe total equity capital of the bank or trust company. The limitationsimposed by this section do not apply to the direct or indirect obligationsof the United States or the direct obligations of a United States territoryor insular possession or of the state of Indiana or any municipalcorporation or taxing district in Indiana. A bank or trust company maypurchase for its own account and sell shares of stock in federal or statechartered small business investment companies that have received apermit or license to operate under the federal Small BusinessInvestment Act (15 U.S.C. 681). However, a bank or trust companymay not acquire shares in any small business investment company if,upon the making of that acquisition, the aggregate amount of shares insmall business investment companies then held by the bank wouldexceed five percent (5%) of its total equity capital.

(b) A bank or trust company may purchase for its own account andsell:

(1) shares of open-end investment companies the portfolios ofwhich consist solely of securities that are eligible for purchaseand sale by national banking associations; and(2) collateralized obligations that are eligible for purchase andsale by national banking associations. However, a bank or trustcompany may purchase for its own account and sell theobligations only to the extent that a national banking associationcan purchase and sell those obligations.

(c) A bank or trust company may deposit its funds in:(1) a federally chartered savings association;(2) a savings association or other entity organized and operatedaccording to federal law or the laws of any state or the District of

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Columbia; or(3) a bank organized and operated according to federal law or thelaws of any state or the District of Columbia;

the accounts of which are insured by the Federal Deposit InsuranceCorporation.

(d) A bank or trust company may not purchase for its own accountany bond, note, or other evidence of indebtedness that is commonlydesignated as a security that is speculative in character or that hasspeculative characteristics. For the purposes of this subsection, asecurity is speculative or has speculative characteristics if at the timeof purchase the security:

(1) is rated below the first four (4) rating classes by a generallyrecognized security rating service;(2) is in default; or(3) is otherwise considered speculative by the director.

(e) A bank or trust company may purchase for its own account asecurity that is not rated by a generally recognized security ratingservice if:

(1) the bank or trust company at the time of purchase obtainsfinancial information that is adequate to document the investmentquality of the security; and(2) the security is not otherwise considered speculative by thedirector.

(f) Except as otherwise authorized by this title, a bank or trustcompany may not acquire for its own account, whether by purchaseor otherwise, any share of stock of a corporation that is not asubsidiary of that bank or trust company unless the purchaseacquisition is considered expedient to prevent loss from a debtpreviously contracted in good faith. Any shares of stock or otherownership interest in a corporation or another entity thus acquiredby a bank or trust company and that would not have been eligible forpurchase acquisition shall be sold and disposed of within six (6)months from the date of acquisition unless the director grants anextension of time for the sale and disposition.

(g) Notwithstanding any other provision of this article, a bank ortrust company may purchase for its own account shares of stock of abanker's bank insured by the Federal Deposit Insurance Corporation ora holding company that owns or controls a banker's bank insured by theFederal Deposit Insurance Corporation. For the purposes of thissubsection, a "banker's bank" is a bank (as defined in IC 28-2-14-2):

(1) the stock of which is owned exclusively by other banks (asdefined in IC 28-2-14-2), or by a bank holding company the stock

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of which is owned exclusively by other banks (as defined inIC 28-2-14-2); and(2) that is engaged exclusively in providing services to otherbanks (as defined in IC 28-2-14-2), and to their officers, directors,and employees.

A bank's or trust company's holdings of the stock of an insured banker'sbank or of a holding company that owns or controls an insured banker'sbank may not exceed ten percent (10%) of the capital and surplus ofthe bank or trust company. A bank or trust company may not purchasethe stock of an insured banker's bank or of a holding company thatowns or controls an insured banker's bank if, after the purchase, thebank or trust company would own more than five percent (5%) of anyclass of voting securities of the banker's bank or holding company.

(h) Notwithstanding any other provision of this article, a bank ortrust company may invest in a casualty insurance company organizedsolely for the purpose of insuring banks, trust companies, and bankholding companies and their officers and directors from and againstliabilities, including those covered by bankers' blanket bonds anddirector and officer liability insurance and other public liabilityinsurance. The investment must take the form of:

(1) the purchase for the bank's or trust company's own account ofshares of stock of the casualty insurance company or shares ofstock of an association of banks organized for the purpose offunding the casualty insurance company; or(2) loans to such an association of banks.

The total investment of any bank or trust company under thissubsection may not exceed five percent (5%) of the capital and surplusof the bank or trust company.

(i) Any bank or trust company may establish or acquire a subsidiarythat engages in:

(1) the sale, distribution, or underwriting of securities issued byinvestment companies (as defined in Section 3 of the InvestmentCompany Act of 1940 (15 U.S.C. 80a-3); or(2) the underwriting or distribution of securities backed by orrepresenting an interest in mortgages.

(j) As used in this section, "total equity capital" means unimpairedcapital stock, unimpaired surplus, unimpaired undivided profits,subordinated debt that has been approved by the state or federalregulatory agencies, and one hundred percent (100%) of loan reserves.

(k) The department may define an investment security bydepartment policy or by rule.

(l) A bank or trust company may establish a trading account for the

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purchase and resale of securities that are otherwise eligible forpurchase or resale by the bank or trust company. The trading accountmust comply with the requirements established by policy or rule of thedepartment.

(m) A bank or trust company that purchases a security for its ownaccount shall maintain sufficient records of the security to allow thesecurity to be properly identified by the department for examinationpurposes.

SECTION 32. IC 28-1-13-10 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 10. (a) Except asotherwise provided, and subject to subsection (b), an officer, director,owner, partner, employee, or attorney of any bank or trust companywho stipulates for, receives, or consents or agrees to receive, any fee,commission, gift, or thing of value, from any person, for the purpose ofprocuring or endeavoring to procure for any person any loan from orthe purchase or discount of any paper, note, draft, check, or bill ofexchange by the bank or trust company, commits a Class Amisdemeanor.

(b) The prohibitions set forth in subsection (a) do not apply toa bank's or a trust company's:

(1) bona fide employment agreements, including benefit orcompensation plans; or(2) compensation agreements with third party independentcontractors.

SECTION 33. IC 28-1-20-4, AS AMENDED BY P.L.186-2015,SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 4. (a) Except as provided in subsections (c), (d),(g), and (o), it is unlawful for any person, firm, limited liabilitycompany, or corporation (other than a bank or trust company, a bankholding company, a subsidiary of a bank or trust company, a subsidiaryof a bank holding company, a subsidiary of a savings bank, or asubsidiary of a savings association organized or reorganized underIC 28 or statutes in effect at the time of organization or reorganizationor under the laws of the United States):

(1) to use the word, or a derivation of the word, "bank", "banc","banco", or "bankcor", as a part of the name or title of the person,firm, limited liability company, or corporation, whether the wordis used as the person's, firm's, limited liability company's, orcorporation's official entity name or an assumed businessname under IC 23-15-1-1, if the use of the word would create asubstantial likelihood of misleading the public by implying thatthe person, firm, limited liability company, or corporation is a

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state or federally chartered bank, trust company, savings bank, orsavings association; or(2) to advertise or represent the person, firm, limited liabilitycompany, or corporation to the public:

(A) as a bank or trust company or a corporate fiduciary; or(B) as affording the services or performing the duties which bylaw only a bank or trust company or a corporate fiduciary isentitled to afford and perform.

(b) A financial institution organized under the laws of any state orthe United States is authorized to do business in Indiana:

(1) at its principal office;(2) at any branch office; or(3) otherwise;

using a name other than its official entity name if the financialinstitution notifies the department at least ten (10) days before usingthe other name.

(c) Notwithstanding the prohibitions of this section, An out-of-statefinancial institution with the word "bank" in its legal name may use theword "bank" if the financial institution is insured by the FederalDeposit Insurance Corporation or its successor.

(d) Notwithstanding subsection (a), A building and loan associationorganized under IC 28-4 (before its repeal) may include in its name ortitle:

(1) the words "savings bank"; or(2) the word "bank" if the name or title also includes either thewords "savings bank" or letters "SB".

A building and loan association that includes "savings bank" in its titleunder this section does not by that action become a savings bank forpurposes of IC 28-6.1.

(e) The name or title of a savings bank governed by IC 28-6.1 mustinclude the words "savings bank" or the letters "SB".

(f) A savings association may include in its name the words"building and loan association".

(g) Notwithstanding subsection (a), A bank holding company (asdefined in 12 U.S.C. 1841) may use the word "bank" or "banks" as apart of its name. However, this subsection does not permit a bankholding company to advertise or represent itself to the public asaffording the services or performing the duties that by law a bank ortrust company only is entitled to afford and perform.

(h) The department is authorized to investigate the business affairsof any person, firm, limited liability company, or corporation that uses"bank", "banc", or "banco" in its title or holds itself out as a bank,

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corporate fiduciary, or trust company for the purpose of determiningwhether the person, firm, limited liability company, or corporation isviolating any of the provisions of this article, and, for that purpose, thedepartment and its agents shall have access to any and all of the books,records, papers, and effects of the person, firm, limited liabilitycompany, or corporation. In making its examination, the departmentmay examine any person and the partners, officers, members, or agentsof the firm, limited liability company, or corporation under oath,subpoena witnesses, and require the production of the books, records,papers, and effects considered necessary. On application of thedepartment, the circuit or superior court of the county in which theperson, firm, limited liability company, or corporation maintains aplace of business shall, by proper proceedings, enforce the attendanceand testimony of witnesses and the production and examination ofbooks, papers, records, and effects.

(i) The department is authorized to exercise the powers underIC 28-11-4 against a person, firm, limited liability company, orcorporation that improperly holds itself out as a financial institution.

(j) A person, firm, limited liability company, or corporation whoviolates this section is subject to a penalty of five hundred dollars($500) per day for each and every day during which the violationcontinues. The penalty imposed shall be recovered in the name of thestate on relation of the department and, when recovered, shall be paidinto the financial institutions fund established by IC 28-11-2-9.

(k) The word, or a derivation of the word, "bank", "banc", "banco",or "bankcor" may not be included in the name of a corporate fiduciaryif the inclusion of the word would create a substantial likelihood ofmisleading the public by implying that the corporate fiduciary is a stateor federally chartered bank, trust company, savings bank, or savingsassociation.

(l) A person, firm, limited liability company, or corporation may notuse the name of an existing depository financial institution or holdingcompany of a depository financial institution, or a name confusinglysimilar to that of an existing depository financial institution or holdingcompany of a depository financial institution, when marketing to orsoliciting business from a customer or prospective customer if thereference to the existing depository financial institution or holdingcompany of a depository financial institution is:

(1) without the consent of the existing depository financialinstitution or holding company of a depository financialinstitution; and(2) in a manner that could cause a reasonable person to believe

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that the marketing material or solicitation:(A) originated from;(B) is endorsed by; or(C) is in any other way the responsibility of;

the existing depository financial institution or holding company of adepository financial institution.

(m) An existing depository financial institution or holding companyof a depository financial institution may, in addition to any otherremedies available under the law, report an alleged violation ofsubsection (l) to the department. If the department finds that themarketing material or solicitation in question is in violation ofsubsection (l), the department may direct the person, firm, limitedliability company, or corporation to cease and desist from using thatmarketing material or solicitation in Indiana. If that person, firm,limited liability company, or corporation persists in using the marketingmaterial or solicitation, the department may impose a civil penalty ofup to fifteen thousand dollars ($15,000) for each violation. Eachinstance in which the marketing material or solicitation is sent to acustomer or prospective customer constitutes a separate violation ofsubsection (l).

(n) Nothing in subsection (l) or (m) prohibits the use of or referenceto the name of an existing depository financial institution or holdingcompany of a depository financial institution in marketing materials orsolicitations, if the use or reference does not deceive or confuse areasonable person regarding whether the marketing material orsolicitation:

(1) originated from;(2) is endorsed by; or(3) is in any other way the responsibility of;

the existing depository financial institution or holding company of adepository financial institution.

(o) A person, firm, limited liability company, or corporation mayuse the word, or a derivation of the word, "bank", "banc", "banco", or"bankcor" if the use of the word would not create a substantiallikelihood of misleading the public by implying that the person, firm,limited liability company, or corporation is a state or federallychartered bank, trust company, savings bank, or savings association.

(p) As used in this section, "depository financial institution" has themeaning set forth in IC 28-1-1-6.

(q) The department may adopt rules under IC 4-22-2 to implementthis section.

SECTION 34. IC 28-1-29-8, AS AMENDED BY THE

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TECHNICAL CORRECTIONS BILL OF THE 2017 GENERALASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 8. (a) An agreement between a licensee and adebtor must:

(1) be in a written form;(2) be dated and signed by the licensee and the debtor;(3) include the name of the debtor and the address where thedebtor resides;(4) include the name, business address, and telephone number ofthe licensee;(5) be delivered to the debtor immediately upon formation of theagreement; and(6) disclose the following:

(A) The services to be provided.(B) The amount or method of determining the amount of allfees and charges, individually itemized, to be paid by thedebtor.(C) The schedule of payments to be made by or on behalf ofthe debtor, including the amount of each payment, the date onwhich each payment is due, and an estimate of the date of thefinal payment.(D) If a plan provides for regular periodic payments tocreditors:

(i) each creditor of the debtor to which payment will bemade, the amount owed to each creditor, and anyconcessions the licensee reasonably believes each creditorwill offer; and(ii) the schedule of expected payments to each creditor,including the amount of each payment and the date on whichthe payment will be made.

(E) Each creditor that the licensee believes will not participatein the plan and to which the licensee will not direct payment.(F) The manner in which the licensee will comply with thelicensee's obligations under section 9(k) of this chapter.(G) That:

(i) the licensee may terminate the agreement for good cause,upon return of unexpended money of the debtor; and(ii) the debtor may contact the department with anyquestions or complaints regarding the licensee.

(H) The address, telephone number, and Internet address orweb site of the department.(I) That the debtor has a right to terminate the agreement at

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any time without penalty (notwithstanding the close-out fee aspermitted by section 8.3(d) of this chapter) or obligation.(J) That the debtor authorizes any bank insured by the FederalDeposit Insurance Corporation in which the licensee or thelicensee's agent has established a trust account to disclose tothe department any financial records relating to the trustaccount.(K) That the licensee shall notify the debtor within five (5)days after learning of a creditor's final decision to reject orwithdraw from a plan under the agreement.

(b) For purposes of subsection (a)(5), delivery of an electronicrecord occurs when:

(1) the record is made available in a format in which the debtormay retrieve, save, and print the record; and(2) the debtor is notified that the record is available.

(c) A debtor may exercise the debtor's right to terminate theagreement at any time without penalty (notwithstanding the close-outfee as permitted by section 8.3(d) of this chapter) or obligation, asdescribed in subsection (a)(6)(I), by giving the licensee written orelectronic notice, in which event:

(1) the licensee shall:(A) refund all unexpended money that the licensee or thelicensee's agent has received from or on behalf of the debtorfor the reduction or satisfaction of the debtor's debt; and(B) notify immediately in writing all creditors in the debtmanagement plan of the cancellation by the contract debtor;and

(2) all powers of attorney granted by the debtor to the licensee arerevoked and ineffective.

(d) A licensees's licensee's notice of a creditor's final decision toreject or withdraw from a plan under the agreement, as described insubsection (a)(6)(K) must include:

(1) the identity of the creditor; and(2) a statement that the debtor has the right to modify or terminatethe agreement.

(e) All creditors included in the plan must be notified of the contractdebtor's and licensee's relationship.

(f) A licensee shall give to the contract debtor a dated receipt foreach payment, at the time of the payment, unless the payment is madeby check, money order, or automated clearinghouse withdrawal asauthorized by the contract debtor.

(g) A licensee may not enter into an agreement with a debtor unless

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the licensee does the following:(1) Conducts a thorough, written budget analysis of the debtor.indicates(2) Determines, based on the analysis of the informationprovided by the debtor or otherwise available to the licensee,that:

(A) a debt management plan is a suitable solution for thedebtor; and(B) the debtor can reasonably meet the payments requiredunder a proposed debt management plan. The following mustbe included in the budget analysis:

(1) Documentation and verification of all income considered. Allincome verification must be dated not more than sixty (60) daysbefore the completion of the budget analysis.(2) Monthly living expense figures, which must be reasonable forthe particular family size and part of Indiana. If expenditurereductions are part of the planned budget for the debtor, details ofthe expected savings must be documented in the debtor's file andset forth in the budget provided to the debtor.(3) Documentation and verification, by a current credit bureaureport, current debtor account statements, or direct documentationfrom the creditor, of monthly debt payments and balances to bepaid outside the plan.(4) Documentation and verification, by a current credit bureaureport, current debtor account statements, or direct documentationfrom the creditor, of the monthly debt payments and currentbalances to be paid through the plan.(5) The date of the budget analysis and the signature of the debtor.(3) If:

(A) the licensee has made a determination described insubdivision (2)(A); and(B) the debtor's current monthly expense and debtpayments exceed the debtor's net income;

establishes a written plan that supplements the debtmanagement plan and specifies the manner by which it will bepossible for the debtor to meet the payment obligations undera proposed debt management plan.

(h) A licensee may not enter into an agreement with a debtor for aperiod longer than sixty (60) months.

(i) A licensee may provide services under this chapter in the sameplace of business in which another business is operating, or from whichother products or services are sold, if the director issues a written

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determination that:(1) the operation of the other business; or(2) the sale of other products and services;

from the location in question is not contrary to the best interests ofdebtors.

(j) A licensee without a physical location in Indiana may:(1) solicit sales of; and(2) sell;

additional products and services to Indiana residents if the directorissues a written determination that the proposed solicitation or sale isnot contrary to the best interests of debtors.

(k) A licensee shall maintain a toll free communication system,staffed at a level that reasonably permits a contract debtor to speak toa counselor, debt specialist, or customer service representative, asappropriate, during ordinary business hours.

(l) A debt management company shall act in good faith in allmatters under this chapter.

SECTION 35. IC 28-7-1-9, AS AMENDED BY P.L.137-2014,SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 9. (a) A credit union has the following powers:

(1) To issue shares of its capital stock to its members. Nocommission or compensation shall be paid for securing membersor for the sale of shares.(2) To make loans to officers, directors, or committee membersunder sections 17.1 and 17.2 of this chapter.(3) To invest in any of the following:

(A) Bonds, notes, or certificates that are the direct or indirectobligations of the United States, or of the state, or the directobligations of a county, township, city, town, or other taxingdistrict or municipality or instrumentality of Indiana and thatare not in default.(B) Bonds or debentures issued by the Federal Home LoanBank Act (12 U.S.C. 1421 through 1449) or the Home Owners'Loan Act (12 U.S.C. 1461 through 1468).(C) Obligations of national mortgage associations issued underthe authority of the National Housing Act.(D) Mortgages on real estate situated in Indiana which arefully insured under Title 2 of the National Housing Act (12U.S.C. 1707 through 1715z).(E) Obligations issued by farm credit banks and banks forcooperatives under the Farm Credit Act of 1971 (12 U.S.C.2001 through 2279aa-14).

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(F) Savings and loan associations, other credit unions that areinsured under section 31.5 of this chapter, and certificates ofindebtedness or investment of an industrial loan andinvestment company if the association or company is federallyinsured. Not more than twenty percent (20%) of the assets ofa credit union may be invested in the shares or certificates ofan association or company, nor more than forty percent (40%)in all such associations and companies.(G) Corporate credit unions.(H) Federal funds or similar types of daily funds transactionswith other financial institutions.(I) Shares or certificates of an open-end managementinvestment company registered with the Securities andExchange Commission under the Investment Company Act of1940 (15 U.S.C. 80a-1 through 15 U.S.C. 80a-3 and 15 U.S.C.80a-4 through 15 U.S.C. 80a-64), if all of the followingconditions are met:

(i) The fund's assets consist of and are limited to securitiesin which a credit union may invest directly.(ii) The credit union has an equitable and undivided interestin the underlying assets of the fund.(iii) The credit union is not liable for acts or obligations ofthe fund.(iv) The credit union's investment in any one (1) fund doesnot exceed fifteen percent (15%) of the amount of the creditunion's net worth.

(J) For a credit union that is well capitalized (as defined in Part702 of the Rules and Regulations of the National Credit UnionAdministration, 12 CFR 702), investment securities, as may bedefined by a statute or a policy or rule of the department andsubject to the following:

(i) The department may prescribe, by policy or rule,limitations or restrictions on a credit union's investment ininvestment securities.(ii) The total aggregate amount of investment securitiespurchased or held by a credit union may never exceed at anygiven time ten percent (10%) of the capital and surplus ofthe credit union. However, the limitations imposed by thisitem do not apply to investments in the direct or indirectobligations of the United States or in the direct obligationsof a United States territory or insular possession, or in thedirect obligations of the state or any municipal corporation

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or taxing district in Indiana.(iii) A credit union may not purchase for its own accountany bond, note, or other evidence of indebtedness that iscommonly designated as a security that is speculative incharacter or that has speculative characteristics. For thepurposes of this item, a security is speculative or hasspeculative characteristics if at the time of purchase thesecurity is in default, is rated below the first four (4) ratingclasses by a generally recognized security rating service, oris otherwise considered speculative by the director.(iv) A credit union may purchase for its own account asecurity that is not rated by a generally recognized securityrating service if the credit union at the time of purchaseobtains financial information that is adequate to documentthe investment quality of the security and if the security isnot otherwise considered speculative by the director.(v) A credit union that purchases a security for its ownaccount shall maintain sufficient records of the security toallow the security to be properly identified by thedepartment for examination purposes.(vi) Except as otherwise authorized by this title, a creditunion may not acquire for its own account, whether bypurchase or otherwise, any share of stock of a corporationIf a credit union possesses that is not a subsidiary of thatcredit union unless the acquisition is consideredexpedient to prevent loss from a debt previouslycontracted in good faith. Any shares of stock or anotherequity investment as a result of a loan default, the otherownership interest in a corporation or another entitythus acquired by a credit union and that would not havebeen eligible for acquisition shall dispose be sold anddisposed of the investment within a reasonable period thatdoes not exceed one (1) year or a longer period if approvedby the department. six (6) months from the date ofacquisition unless the director grants an extension oftime for the sale and disposition.(vii) Subject to items (i) through (iv), a credit union maypurchase yankee dollar deposits, eurodollar deposits,banker's acceptances, deposit notes, bank notes with originalweighted average maturities of less than five (5) years, andinvestments in obligations of, or issued by, any state orpolitical subdivision (including any agency, corporation, or

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instrumentality of a state or political subdivision).(K) Collateralized obligations that are eligible for purchaseand sale by federal credit unions. However, a credit union maypurchase for its own account and sell the obligations only tothe extent that a federal credit union can purchase and sellthose obligations.

(4) With the prior approval of the department, and subject to thelimitations of this subsection, a credit union may organize, investin, or loan money to a credit union service organization (asdefined in Part 712 of the regulations of the National CreditUnion Administration, 12 CFR 712). A credit union may not loanor invest in a credit union service organization if the aggregateamount of all such loans or investments in a particular creditunion service organization is greater than ten percent (10%) of thecapital, surplus, and unimpaired shares of the credit union withoutthe prior written approval of the department. A credit union mayorganize, invest in, or loan money to a credit union serviceorganization described in this subdivision only if the followingrequirements are met:

(A) The credit union service organization is adequatelycapitalized or has a reasonable plan for adequate capitalizationif the credit union service organization is to be formed or isnewly formed.(B) The credit union service organization is structured andoperated as a separate legal entity from the credit union.(C) The credit union obtains a written legal opinion that thecredit union service organization is structured and operated ina manner that limits the credit union's potential liability for thedebts and liabilities of the credit union service organization tonot more than the loss of money invested in or loaned to thecredit union service organization by the credit union.(D) The credit union service organization agrees in writing toprepare financial statements and provide the financialstatements to the credit union at least quarterly, and to thedepartment upon request.(E) The credit union service organization agrees in writing toobtain an audit of the credit union service organization from acertified public accountant at least annually and provide acopy of each audit report to the credit union, and to thedepartment upon request. A wholly owned credit union serviceorganization is not required to obtain a separate annual auditif the credit union service organization is included in the

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annual consolidated audit of the credit union that is the creditunion service organization's parent.(F) The credit union service organization operates incompliance with all applicable federal and state laws.

(5) To deposit its funds into:(A) depository institutions that are federally insured; or(B) state chartered credit unions that are privately insured byan insurer approved by the department.

(6) To purchase, hold, own, or convey real estate as may beconveyed to the credit union in satisfaction of debts previouslycontracted or in exchange for real estate conveyed to the creditunion.(7) To own, hold, or convey real estate as may be purchased bythe credit union upon judgment in its favor or decrees offoreclosure upon mortgages.(8) To issue shares of stock and upon the terms, conditions,limitations, and restrictions and with the relative rights as may bestated in the bylaws of the credit union, but no stock may havepreference or priority over the other to share in the assets of thecredit union upon liquidation or dissolution or for the payment ofdividends except as to the amount of the dividends and the timefor the payment of the dividends as provided in the bylaws.(9) To charge the member's share account for the actual cost of anecessary locator service when the member has failed to keep thecredit union informed about the member's current address. Thecharge shall be made only for amounts paid to a person or concernnormally engaged in providing such service, and shall be madeagainst the account or accounts of any one (1) member not morethan once in any twelve (12) month period.(10) To transfer to an accounts payable account, a dormantaccount, or a special account share accounts which have beeninactive, except for dividend credits, for a period of at least two(2) years. The credit union shall not consider the payment ofdividends on the transferred account.(11) To invest in fixed assets with the funds of the credit union.An investment in fixed assets in excess of five percent (5%) of itsassets is subject to the approval of the department. A credit unionmay rent excess space at the credit union's main office or branchas a source of income.(12) To establish branch offices, upon approval of the department,provided that all books of account shall be maintained at theprincipal office.

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(13) To pay an interest refund on loans proportionate to theinterest paid during the dividend period by borrowers who aremembers at the end of the dividend period.(14) To purchase life savings and loan protection insurance forthe benefit of the credit union and its members, if:

(A) the coverage is placed with an insurance company licensedto do business in Indiana; and(B) no officer, director, or employee of the credit unionpersonally benefits, directly or indirectly, from the sale orpurchase of the coverage.

(15) To sell and cash negotiable checks, travelers checks, andmoney orders for members.(16) To purchase members' notes from any liquidating creditunion, with written approval from the department, at prices agreedupon by the boards of directors of both the liquidating and thepurchasing credit unions. However, the aggregate of the unpaidbalances of all notes of liquidating credit unions purchased by anyone (1) credit union shall not exceed ten percent (10%) of thepurchasing credit union's capital and surplus unless specialwritten authorization has been granted by the department.(17) To exercise such incidental powers necessary or requisite toenable it to carry on effectively the business for which it isincorporated.(18) To act as a custodian or trustee of any trust created ororganized in the United States and forming part of a taxadvantaged savings plan which qualifies or qualified for specifictax treatment under Section 223, 401(d), 408, 408A, or 530 of theInternal Revenue Code, if the funds of the trust are invested onlyin share accounts or insured certificates of the credit union.(19) To issue shares or insured certificates to a trustee orcustodian of a pension plan, profit sharing plan, or stock bonusplan which qualifies for specific tax treatment under Sections401(d) or 408(a) of the Internal Revenue Code.(20) To exercise any rights and privileges that are:

(A) granted to federal credit unions; but(B) not authorized for credit unions under the Indiana Code(except for this section) or any rule adopted under the IndianaCode;

if the credit union complies with section 9.2 of this chapter.(21) To sell, pledge, or discount any of its assets. However, acredit union may not pledge any of its assets as security for thesafekeeping and prompt payment of any money deposited, except

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that a credit union may, for the safekeeping and prompt paymentof money deposited, give security as authorized by federal law.(22) To purchase assets of another credit union a corporation (asdefined in IC 28-1-8-0.5) and to assume the liabilities of theselling credit union. corporation, or to sell, lease, exchange, orotherwise dispose of all or substantially all of the creditunion's property and assets to a corporation, if:

(A) the credit union complies with IC 28-1-8; and(B) the transaction is authorized in accordance withIC 28-1-8-4.

(23) To act as a fiscal agent of the United States and to receivedeposits from nonmember units of the federal, state, or countygovernments, from political subdivisions, and from other creditunions upon which the credit union may pay varying interest ratesat varying maturities subject to terms, rates, and conditions thatare established by the board of directors. However, the totalamount of public funds received from units of state and countygovernments and political subdivisions that a credit union mayhave on deposit may not exceed twenty percent (20%) of the totalassets of that credit union, excluding those public funds.(24) To join the National Credit Union Administration CentralLiquidity Facility.(25) To participate in community investment initiatives under theadministration of organizations:

(A) exempt from taxation under Section 501(c)(3) of theInternal Revenue Code; and(B) located or conducting activities in communities in whichthe credit union does business.

Participation may be in the form of either charitable contributionsor participation loans. In either case, disbursement of fundsthrough the administering organization is not required to belimited to members of the credit union. Total contributions orparticipation loans may not exceed one-tenth of one percent(0.1%) of total assets of the credit union. A recipient of acontribution or loan is not considered qualified for credit unionmembership. A contribution or participation loan made under thissubdivision must be approved by the board of directors.(26) To establish and operate an automated teller machine(ATM):

(A) at any location within Indiana; or(B) as permitted by the laws of the state in which theautomated teller machine is to be located.

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(27) To demand and receive, for the faithful performance anddischarge of services performed under the powers vested in thecredit union by this article:

(A) reasonable compensation, or compensation as fixed byagreement of the parties;(B) all advances necessarily paid out and expended in thedischarge and performance of its duties; and(C) unless otherwise agreed upon, interest at the legal rate onthe advances referred to in clause (B).

(28) Subject to any restrictions the department may impose, tobecome the owner or lessor of personal property acquired uponthe request and for the use of a member and to incur additionalobligations as may be incident to becoming an owner or lessor ofsuch property.

(b) A credit union shall maintain files containing credit and otherinformation adequate to demonstrate evidence of prudent businessjudgment in exercising the investment powers granted under thischapter or by rule, order, or declaratory ruling of the department.

(c) Subject to any limitations or restrictions that the department ora federal regulator may impose by regulation, rule, policy, or guidance,a credit union may purchase and hold life insurance as follows:

(1) Life insurance purchased or held in connection with employeecompensation or benefit plans approved by the credit union'sboard of directors.(2) Life insurance purchased or held to recover the cost ofproviding preretirement or postretirement employee benefitsapproved by the credit union's board of directors.(3) Life insurance on the lives of borrowers.(4) Life insurance held as security for a loan.(5) Life insurance that a federal credit union may purchase orhold under 12 CFR 701.19(c).

SECTION 36. IC 28-7-1-17, AS AMENDED BY P.L.186-2015,SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 17. (a) Every loan application shall be submittedon a form approved by the board of directors. Loans may be dispersedupon written approval by a majority of the credit committee or a loanofficer. If the credit committee or loan officer fails to approve anapplication for a loan, the applicant may appeal to the board ofdirectors, if such appeal is authorized by the bylaws.

(b) Loans to members may be made only under the following termsand conditions:

(1) All loans shall be evidenced by notes signed by the borrowing

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member.(2) Except as otherwise provided in this section, the terms of anyloan to a member with a maturity of more than six (6) monthsshall provide for principal and interest payments that willamortize the obligation in full within the terms of the loancontract. If the income of the borrowing member is seasonal, theterms of the loan contract may provide for seasonal amortization.(3) Loans may be made upon the security of improved orunimproved real estate. Except as otherwise specified in thissection, such loans must be secured by a first lien upon real estateprior to all other liens, except for taxes and assessments notdelinquent, and may be made with repayment terms other than asprovided in subdivision (2). The credit union loan folder for allreal estate mortgage loans shall include the following:

(A) The loan application.(B) The mortgage instrument.(C) The note.(D) The disclosure statement.(E) The documentation of property insurance.(F) For the real estate for which the loan is made, a writtenappraisal, which must be performed by a state licensed orcertified appraiser designated by the board of directors if theamount of the loan is at least two hundred fifty thousanddollars ($250,000).

(4) Loans made upon security of real estate are subject to thefollowing restrictions:

(A) Real estate loans in which no principal amortization isrequired shall provide for the payment of interest at leastannually and shall mature within five (5) years of the date ofthe loan unless extended and shall not exceed fifty percent(50%) of the fair cash value of the real estate used as security.(B) Real estate loans on improved real estate, except forvariable rate mortgage loans and rollover mortgage loansprovided for in subdivision (5), shall require substantiallyequal payments at successive intervals of not more than one(1) year, shall mature within thirty (30) years, and shall notexceed one hundred percent (100%) of the fair cash value ofthe real estate used as security.(C) Real estate loans on unimproved real estate may be made.The terms of the loan shall:

(i) require substantially equal payments of interest andprincipal at successive intervals of one (1) year or less;

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(ii) mature within ten (10) years; and(iii) not exceed eighty-five percent (85%) of the fair cashvalue of the real estate used as security.

(D) (C) Loans primarily secured by a mortgage whichconstitutes a second lien on improved real estate may be madeonly if the aggregate amount of all loans on the real estate doesnot exceed one hundred percent (100%) of the fair cash valueof the real estate after such loan is made. Repayment termsshall be in accordance with subdivision (2).(E) (D) Real estate loans may be made for the construction ofimprovements to real property. Funds borrowed may beadvanced as work on the improvements progresses.Repayment terms must comply with subdivision (2).

(5) Subject to the limitations of subdivision (3), variable ratemortgage loans and rollover mortgage loans may be made underthe same limitations and rights provided state chartered savingsassociations under IC 28-1-21.5 (before its repeal) or IC 28-15 orfederal credit unions.(6) As used in this subdivision, "originating lender" means theparticipating lender with which the member contracts. A creditunion may participate with other state and federal depositoryfinancial institutions (as defined in IC 28-1-1-6) or credit unionservice organizations in making loans to credit union membersand may sell a participating interest in any of its loans underwritten participation loan policies established by the board ofdirectors. However, the credit union may not sell more than ninetypercent (90%) of the principal of participating loans outstandingat the time of sale. A participating credit union that is not theoriginating lender may participate only in loans made to the creditunion's own members or to members of another participating stateor federal credit union. A master participation agreement must beproperly executed. The agreement must include provisions foridentifying, either through documents incorporated by referenceor directly in the agreement, the participation loan or loans beforethe sale of the loans.(7) Notwithstanding subdivisions (1) through (6), a credit unionmay make any of the following:

(A) Any loan that may be made by a federal credit union.However, IC 24-4.5 applies to any loan that is:

(i) made under this clause; and(ii) within the scope of IC 24-4.5.

Any provision of federal law that is in conflict with IC 24-4.5

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does not apply to a loan made under this clause.(B) Subject to subdivision (3), any alternative mortgage loan(as defined in IC 28-15-11-2) that may be made by a savingsassociation (as defined in IC 28-15-1-11) under IC 28-15-11.A loan made under this clause by a credit union is subject tothe same terms, conditions, exceptions, and limitations thatapply to an alternative mortgage loan made by a savingsassociation under IC 28-15-11.

(8) A credit union may make a loan under either:(A) subdivisions (2) through (6); or(B) subdivision (7);

but not both. A credit union shall make an initial determination asto whether to make a loan under subdivisions (2) through (6) orunder subdivision (7). If the credit union determines that a loan orcategory of loans is to be made under subdivision (7), the writtenloan policies of the credit union must include that determination.A credit union may not combine the terms and conditions thatapply to a loan made under subdivisions (2) through (6) with theterms and conditions that apply to a loan made under subdivision(7) to make a loan not expressly described and authorized eitherunder subdivisions (2) through (6) or under subdivision (7).

(c) Nothing in this section prevents any credit union from taking anindemnifying or second mortgage on real estate as additional security.

SECTION 37. IC 28-7-1-39, AS AMENDED BY P.L.27-2012,SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 39. (a) As used in this section, "loans andextensions of credit" includes all direct or indirect advances of fundsmade to a member on the basis of:

(1) an obligation of the member to repay the funds; or(2) a pledge of specific property by or on behalf of the memberand from which the funds advanced are repayable.

The term includes any contractual liability of a credit union to advancefunds to or on behalf of a member, to the extent specified by thedepartment. The term also includes any credit exposure to a personarising from a derivative transaction (as defined in 12 U.S.C. 84(b)(3))between the credit union and the person.

(b) As used in this section, "member" includes an individual, a soleproprietorship, a partnership, a joint venture, an association, a trust, anestate, a business trust, a limited liability company, a corporation, asovereign government, or an agency, instrumentality, or politicalsubdivision of a sovereign government, or any similar entity ororganization.

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(c) Except as provided in subsection (e), the total loans andextensions of credit by a credit union to a member outstanding at anygiven time and not fully secured, as determined in a manner consistentwith subsection (d), by collateral with a market value at least equal tothe amount of the loan or extension of credit may not exceed fifteenpercent (15%) of the capital and surplus of the credit union.

(d) Except as provided in subsection (e), the total loans andextensions of credit by a credit union to a member outstanding at anygiven time and fully secured by readily marketable collateral having amarket value, as determined by reliable and continuously availableprice quotations, at least equal to the amount of funds outstanding maynot exceed ten percent (10%) of the capital and surplus of the creditunion. The limitation in this subsection is separate from and in additionto the limitation set forth in subsection (c).

(e) The limitations set forth in subsections (c) and (d) are subject tothe following exceptions:

(1) Loans or extensions of credit arising from the discount ofcommercial or business paper evidencing an obligation to themember negotiating it with recourse are not subject to anylimitation based on capital and surplus.(2) The purchase of bankers' acceptances of the kind described in12 U.S.C. 372 and issued by a financial institution organized orreorganized under the laws of Indiana or any other state or theUnited States are not subject to any limitation based on capitaland surplus.(3) Loans or extensions of credit secured by bills of lading,warehouse receipts, or similar documents transferring or securingtitle to readily marketable staples are subject to a limitation ofthirty-five percent (35%) of capital and surplus in addition to thegeneral limitations if the market value of the staples securing eachadditional loan or extension of credit at all times equals orexceeds one hundred fifteen percent (115%) of the outstandingamount of the loan or extension of credit. The staples shall befully covered by insurance whenever it is customary to insuresuch staples.(4) Loans or extensions of credit secured by bonds, notes,certificates of indebtedness, or Treasury bills of the United Statesor by any other obligation fully guaranteed as to principal andinterest by the United States are not subject to any limitationbased on capital and surplus.(5) Loans or extensions of credit to or secured by unconditionaltakeout commitment or guarantees of any department, agency,

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bureau, board, commission, or establishment of the United Statesor any corporation wholly owned directly or indirectly by theUnited States are not subject to any limitation based on capitaland surplus.(6) Loans or extensions of credit secured by a segregated depositaccount in the lending credit union are not subject to anylimitation based on capital and surplus.(7) Loans or extensions of credit to any credit union, when theloans or extensions of credit are approved by the director of thedepartment, are not subject to any limitation based on capital andsurplus.

(f) Loans or extensions of credit arising from the discount ofnegotiable or nonnegotiable installment consumer paper that carries afull recourse endorsement or unconditional guarantee by the membertransferring the paper are subject under this section to a maximumlimitation equal to twenty-five percent (25%) of the capital and surplus,notwithstanding the collateral requirements set forth in subsection (d).

(g) If the credit union's files or the knowledge of the credit union'sofficers of the financial condition of each maker of consumer paperdescribed in subsection (f) is reasonably adequate, and an officer of thecredit union designated for that purpose by the board of directors of thecredit union certifies in writing that the credit union is relying primarilyupon the responsibility of each maker for payment of the loans orextensions of credit and not upon any full or partial recourseendorsement or guarantee by the transferor, the limitations of thissection as to the loans or extensions of credit of each maker shall be thesole applicable loan limitations.

(h) Loans or extensions of credit secured by shipping documents orinstruments transferring or securing title covering livestock or givinga lien on livestock when the market value of the livestock securing theobligation is not at any time less than one hundred fifteen percent(115%) of the face amount of the note covered are subject under thissection, notwithstanding the collateral requirements set forth insubsection (d), to a maximum limitation equal to twenty-five percent(25%) of the capital and surplus.

(i) Loans or extensions of credit that arise from the discount bydealers in dairy cattle of paper given in payment for dairy cattle, whichpaper carries a full recourse endorsement or unconditional guaranteeof the seller and that are secured by the cattle being sold, are subjectunder this section, notwithstanding the collateral requirements set forthin subsection (d), to a limitation of twenty-five percent (25%) of thecapital and surplus.

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(j) Except as otherwise provided, an officer, director, employee, orattorney of a credit union who stipulates for, receives, or consents oragrees to receive, any fee, commission, gift, or thing of value, from anyperson, for the purpose of procuring or endeavoring to procure for anymember any loan from or the purchase or discount of any paper, note,draft, check, or bill of exchange by the credit union, commits a ClassA misdemeanor. However, the prohibitions set forth in thissubsection do not apply to a credit union's:

(1) bona fide employment agreements, including benefit orcompensation plans; or(2) compensation agreements with third party independentcontractors.

(k) Except as otherwise provided in this chapter, any credit unionthat holds obligations of indebtedness in violation of the limitationsprescribed in this section shall, not later than July 1, 2006, cause theamount of the obligations to conform to the limitations prescribed bythis chapter and by the provisions of this section. The department may,in its discretion, extend the time for effecting this conformity, inindividual instances, if the interests of the depositors will be protectedand served by an extension. Upon the failure of a credit union tocomply with the limitations, in accordance with this section or inaccordance with any order of the department concerning thelimitations, the department may declare that the credit union isconducting its business in an unauthorized or unsafe manner andproceed in accordance with IC 28-1-3.1-2.

(l) The department may apply the provisions of 12 CFR 32 in theapplication and administration of this chapter.

SECTION 38. IC 28-7-5-4, AS AMENDED BY P.L.137-2014,SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 4. (a) Application for a pawnbroker's license shallbe submitted on a form prescribed by the director and must include allinformation required by the director. An application submitted underthis section must identify the location or locations at which theapplicant proposes to engage in business as a pawnbroker in Indiana.If any business, other than the business of acting as a pawnbroker underthis chapter, will be conducted by the applicant or another person atany location identified under this subsection, the applicant shallindicate for each location at which another business will be conducted:

(1) the nature of the other business;(2) the name under which the other business operates;(3) the address of the principal office of the other business;(4) the name and address of the business's resident agent in

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Indiana; and(5) any other information the director may require.

(b) An application submitted under this section must indicatewhether any individual described in section 8(a)(2) or 8(a)(3) of thischapter at the time of the application:

(1) is under indictment for a felony under the laws of Indiana orany other jurisdiction; or(2) has been convicted of a felony under the laws of Indiana orany other jurisdiction.

(c) The director may request that the applicant provide evidence ofcompliance with this section at:

(1) the time of application;(2) the time of renewal of a license; or(3) any other time considered necessary by the director.

(d) For purposes of subsection (c), evidence of compliance with thissection may include:

(1) criminal background checks, including a national criminalhistory background check (as defined in IC 10-13-3-12) by theFederal Bureau of Investigation for any individual described insubsection (b);(2) credit histories; and(3) other background checks considered necessary by the director.

If the director requests a national criminal history background checkunder subdivision (1) for an individual described in that subdivision,the director shall require the individual to submit fingerprints to thedepartment or to the state police department, as appropriate, at the timeevidence of compliance is requested under subsection (c). Theindividual to whom the request is made shall pay any fees or costsassociated with the fingerprints and the national criminal historybackground check. The national criminal history background checkmay be used by the director to determine the individual's compliancewith this section. The director or the department may not release theresults of the national criminal history background check to any privateentity.

SECTION 39. IC 28-7-5-10.4 IS ADDED TO THE INDIANACODE AS A NEW SECTION TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2017]: Sec. 10.4. A licensee may carry onother business at a location where the licensee conducts thebusiness of acting as a pawnbroker unless the licensee carries onother business for the purpose of evasion or violation of thischapter.

SECTION 40. IC 28-7-5-10.5 IS REPEALED [EFFECTIVE JULY

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1, 2017]. Sec. 10.5. (a) This section applies if, after a person has beenissued a license or renewal license under this chapter, any of thefollowing apply:

(1) Any business, other than the business of acting as apawnbroker under this chapter, will be conducted by the licenseeor another person at any location in Indiana in which the licenseeconducts the business of acting as a pawnbroker under thischapter.(2) Any information concerning other business conducted at thelocations identified in the licensee's application under section 4(a)of this chapter changes.

(b) For each location described in subsection (a)(1) or (a)(2), thelicensee shall provide to the department the information required undersection 4(a) of this chapter with respect to that location:

(1) not later than fifteen (15) days after the other business beginsoperating at the location; or(2) if the licensee's next license renewal fee under section 11 ofthis chapter is due before the date described in subdivision (1),along with the licensee's next license renewal fee under section 11of this chapter.

SECTION 41. IC 28-7-5-21, AS AMENDED BY P.L.217-2007,SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 21. (a) The pawnbroker shall, at the time ofmaking a loan, deliver to the pledger or the pledger's agent amemorandum or ticket on which shall be legibly written or printed thefollowing information:

(1) The name of the pledger.(2) The name of the pawnbroker and the place where the pledgeis made.(3) The article or articles pledged, and a description of thearticles. However, if multiple articles of a similar nature that donot contain an identification or serial number (such as preciousmetals, gemstones, musical recordings, video recordings, books,or hand tools) are delivered together in one (1) transaction, thedescription of the articles is adequate if the description containsthe quantity of the articles delivered and a physical description ofthe type of articles delivered, including any other uniqueidentifying marks, numbers, names, letters, or special features.(4) The amount of the loan.(5) The date of the transaction.(6) The serial number of the loan.(7) The sum of the interest as provided in section 28 of this

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chapter and the charge as provided in section 28.5 of this chapterstated as an annual percentage rate computed in accordance withregulations issued by the Federal Reserve Board under theFederal Consumer Credit Protection Act (as defined inIC 24-4.5-1-302) and with regulations adopted under that act.(8) The amount of interest.(9) The amount of charge and principal due at maturity.(10) A copy of sections 28, 28.5, and 30 of this chapter.(11) The date of birth of the pledger.(12) The type of government issued identification used to verifythe identity of the pledger, together with the name of thegovernmental agency that issued the identification, and theidentification number present on the government issuedidentification.(13) The last date on which the pledged article or articles may beredeemed before the article or articles may be sold if the loan isnot redeemed, renewed, or extended. The language setting forththe information described in this subdivision must be in 14 pointboldface type.(14) A statement that:

(A) notifies the pledger that the pawnbroking transaction isregulated by the department; and(B) includes a toll free telephone number for the department.

(b) A pawnbroker may insert in such ticket any other terms andconditions not inconsistent with this chapter. However, nothingappearing on a pawn ticket shall relieve the pawnbroker of theobligations to exercise reasonable care in the safekeeping of articlespledged with the pawnbroker.

SECTION 42. IC 28-7-5-21.5 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 21.5. A pawnbroker isrequired to disclose to a debtor in a pawn transaction the informationrequired by the Federal Reserve Board under the Federal ConsumerCredit Protection Act (15 U.S.C. 1601 et seq.) and its implementing byregulations adopted under that act.

SECTION 43. IC 28-7-5-24 IS AMENDED TO READ ASFOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 24. Upon thepledger's:

(1) presentation of the pawn ticket prior to before maturity and ofthe underlying loan;(2) payment of accrued interest and any authorized additionalcharge; and the(3) tender of not less than one dollar ($1.00) ($1) of the principal

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balance;the pawnbroker shall accept the same, items set forth in subdivisions(1) through (3), showing due credit of principal payment on the pawnticket, together with the amount of unpaid principal balance, or issuea new ticket for the reduced amount. Future interest charges and anyauthorized additional charge shall be computed on the unpaidprincipal balance.

SECTION 44. IC 28-8-4-20.5, AS ADDED BY P.L.216-2013,SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 20.5. (a) As used in this section, "NationwideMultistate Licensing System and Registry" (or "NationwideMortgage Licensing System and Registry" or "NMLSR") means amortgage multistate licensing system developed and maintained by theConference of State Bank Supervisors and the American Associationof Residential Mortgage Regulators owned and operated by the StateRegulatory Registry, LLC, or by any successor or affiliated entity,for the licensing and registration of creditors, mortgage loanoriginators, and other financial services entities and their employeesand agents. The term includes any other name or acronym that maybe assigned to the system by the State Regulatory Registry, LLC,or by any successor or affiliated entity.

(b) Subject to subsection (g), the director may designate theNMLSR to serve as the sole entity responsible for:

(1) processing applications and renewals for licenses under thischapter;(2) issuing unique identifiers for licensees and entities exemptfrom licensing under this chapter; and(3) performing other services that the director determines arenecessary for the orderly administration of the department'slicensing system under this chapter.

(c) Subject to the confidentiality provisions contained in IC 5-14-3,this section, and section 47 of this chapter, the director shall regularlyreport significant or recurring violations of this chapter to the NMLSR.

(d) Subject to the confidentiality provisions contained in IC 5-14-3,this section, and section 47 of this chapter, the director may reportcomplaints received regarding licensees under this chapter to theNMLSR.

(e) The director may report publicly adjudicated licensure actionsagainst a licensee to the NMLSR.

(f) The director shall establish a process by which licensees maychallenge information reported to the NMLSR by the department.

(g) The director's authority to designate the NMLSR under

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subsection (b) is subject to the following:(1) Information stored in the NMLSR is subject to theconfidentiality provisions of IC 5-14-3 and section 47 of thischapter. A person may not:

(A) obtain information from the NMLSR, unless the person isauthorized to do so by statute;(B) initiate any civil action based on information obtainedfrom the NMLSR if the information is not otherwise availableto the person under any other state law; or(C) initiate any civil action based on information obtainedfrom the NMLSR if the person could not have initiated theaction based on information otherwise available to the personunder any other state law.

(2) Documents, materials, and other forms of information in thecontrol or possession of the NMLSR that are confidential undersection 47 of this chapter and that are:

(A) furnished by the director, the director's designee, or alicensee; or(B) otherwise obtained by the NMLSR;

are confidential and privileged by law and are not subject toinspection under IC 5-14-3, subject to subpoena, subject todiscovery, or admissible in evidence in any civil action. However,the director may use the documents, materials, or otherinformation available to the director in furtherance of any actionbrought in connection with the director's duties under this chapter.(3) Disclosure of documents, materials, and information:

(A) to the director; or(B) by the director;

under this subsection does not result in a waiver of any applicableprivilege or claim of confidentiality with respect to thedocuments, materials, or information.(4) Information provided to the NMLSR is subject to IC 4-1-11.(5) This subsection does not limit or impair a person's right to:

(A) obtain information;(B) use information as evidence in a civil action orproceeding; or(C) use information to initiate a civil action or proceeding;

if the information may be obtained from the director or thedirector's designee under any law.(6) The requirements under any federal law or IC 5-14-3regarding the privacy or confidentiality of any information ormaterial provided to the NMLSR, and any privilege arising under

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federal or state law, including the rules of any federal or statecourt, with respect to the information or material, continue toapply to the information or material after the information ormaterial has been disclosed to the NMLSR. The information andmaterial may be shared with all state and federal regulatoryofficials with financial services industry oversight authoritywithout the loss of privilege or the loss of confidentialityprotections provided by federal law or IC 5-14-3.(7) For purposes of this section, the director may enter agreementsor sharing arrangements with other governmental agencies, theConference of State Bank Supervisors, the Money TransmittersRegulators Association, or other associations representinggovernmental agencies, as established by rule or order of thedirector.(8) Information or material that is subject to a privilege orconfidentiality under subdivision (6) is not subject to:

(A) disclosure under any federal or state law governing thedisclosure to the public of information held by an officer or anagency of the federal government or the respective state; or(B) subpoena, discovery, or admission into evidence in anyprivate civil action or administrative process, unless withrespect to any privilege held by the NMLSR with respect tothe information or material, the person to whom theinformation or material pertains waives, in whole or in part, inthe discretion of the person, that privilege.

(9) Any provision of IC 5-14-3 that concerns the disclosure of:(A) confidential supervisory information; or(B) any information or material described in subdivision (6);

and that is inconsistent with subdivision (6) is superseded by thissection.(10) This section does not apply with respect to information ormaterial that concerns the employment history of, and publiclyadjudicated disciplinary and enforcement actions against, aperson described in section 35(b)(2) or 35(b)(3) of this chapterand that is included in the NMLSR for access by the public.(11) The director may require a licensee required to submitinformation to the NMLSR to pay a processing fee consideredreasonable by the director. In determining whether the NMLSRprocessing fee is reasonable, the director shall:

(A) require review of; and(B) make available;

the audited financial statements of the NMLSR.

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(12) Notwithstanding any other provision of law, any:(A) application, renewal, or other form or document that:

(i) relates to licenses issued under this chapter; and(ii) is made or produced in an electronic format;

(B) document filed as an electronic record in a multistateautomated repository established and operated for thelicensing or registration of financial services entities and theiremployees; or(C) electronic record filed through the NMLSR;

is considered a valid original document when reproduced in paperform by the department.

SECTION 45. IC 28-8-4-24, AS AMENDED BY P.L.216-2013,SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 24. An application for licensure under this chaptermust contain the following:

(1) The name of the applicant.(2) The applicant's principal address.(3) A fictitious or trade name, if any, used by the applicant in theconduct of its business.(4) The location of the applicant's business records.(5) The history of the applicant's:

(A) material litigation; and(B) criminal convictions for felonies involving fraud, deceit,or misrepresentation under the laws of Indiana or any otherjurisdiction.

(6) A description of:(A) the activities conducted by the applicant;(B) the applicant's history of operations; and(C) the business activities in which the applicant seeks to beengaged in Indiana.

(7) A list identifying the applicant's proposed authorized delegatesin Indiana.(8) A sample authorized delegate contract, if applicable.(9) A sample form of payment instrument, if applicable.(10) The location or locations at which the applicant and itsauthorized delegates propose to conduct the licensed activities inIndiana. If any business, other than the business of moneytransmission under this chapter, will be conducted by theapplicant or another person at any location identified under thissubdivision, the applicant shall indicate for each location at whichanother business will be conducted:

(A) the nature of the other business;

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(B) the name under which the other business operates;(C) the address of the principal office of the other business;(D) the name and address of the business's resident agent inIndiana; and(E) any other information that the director may require.

However, the applicant is not required to submit the informationrequired by this subdivision if the location at which the otherbusiness will be conducted is the place of business of anauthorized delegate that is not under common control with theapplicant.(11) The name and address of the clearing bank or banks onwhich the applicant's payment instruments will be drawn orthrough which such payment instruments will be payable.(12) Documents revealing that the applicant has a net worth of atleast six hundred thousand dollars ($600,000), calculated inaccordance with generally accepted accounting principles.

SECTION 46. IC 28-8-4-38, AS AMENDED BY P.L.186-2015,SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 38. A licensee may renew a license by complyingwith the following:

(1) Filing with the director or the director's designee the annualrenewal in the form that is prescribed by the director and sent bythe director to each licensee not later than December 31 of eachyear. The renewal must include the following, which, except forthe financial statements described in clause (A), must be filed notlater than December 31:

(A) Either:(i) a copy of the licensee's most recent audited consolidatedannual financial statements, including a balance sheet, astatement of income or loss, a statement of changes inshareholder equity, and a statement of changes in financialposition; or(ii) if the licensee is a wholly owned subsidiary, the parentcorporation's or parent organization's most recentconsolidated audited annual financial statements or theparent corporation's or parent organization's most recentForm 10K report filed with the Securities and ExchangeCommission, along with the licensee's unaudited annualfinancial statements.

The audited financial statements required to be submittedunder this clause must be prepared by an independent certifiedpublic accountant authorized to do business in the United

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States in accordance with AICPA Statements on Standards forAccounting and Review Services (SSARS) and must be filedwith the director or the director's designee not later than onehundred twenty (120) days after the close of the calendar orfiscal year covered by the statements.(B) The number of payment instruments sold by the licenseein Indiana, the dollar amount of those instruments, and thedollar amount of outstanding payment instruments sold by thelicensee calculated from the most recent quarter for which datais available before the date of the filing of the renewalapplication, but in no event more than one hundred twenty(120) days before the renewal date.(C) Material changes to the information submitted by thelicensee on its original application or as part of a renewal thathave not been reported previously to the director on any otherreport or renewal required to be filed under this chapter.(D) A list of the licensee's permissible investments.(E) A list of the locations within Indiana at which businessregulated by this chapter will be conducted by either thelicensee or its authorized delegate. including informationconcerning any business, other than the business of moneytransmission under this chapter, that will be conducted at eachidentified location, as required under section 24(10) of thischapter.

(2) Paying the annual renewal fee described under section 37 ofthis chapter.

SECTION 47. IC 28-8-4-40.4 IS ADDED TO THE INDIANACODE AS A NEW SECTION TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2017]: Sec. 40.4. A licensee may carry onother business at a location where the licensee conducts thebusiness of money transmission unless the licensee carries on otherbusiness for the purpose of evasion or violation of this chapter.

SECTION 48. IC 28-8-4-40.5 IS REPEALED [EFFECTIVE JULY1, 2017]. Sec. 40.5. (a) This section applies if, after a person has beenissued a license or renewal license under this chapter, any of thefollowing apply:

(1) Any business, other than the business of money transmissionunder this chapter, will be conducted by the licensee or anotherperson, other than an authorized delegate that is not undercommon control with the applicant, at any location in Indiana inwhich the licensee conducts the business of money transmissionunder this chapter.

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(2) Any information concerning other business conducted at thelocations identified in the licensee's application under section24(10) of this chapter changes.

(b) For each location described in subsection (a)(1) or (a)(2), thelicensee shall provide to the department the information required undersection 24(10) of this chapter with respect to that location:

(1) not later than fifteen (15) days after the other business beginsoperating at the location; or(2) if the licensee's next application for a renewal license undersection 38 of this chapter is due before the date described insubdivision (1), in the licensee's next application for a renewallicense under section 38 of this chapter.

SECTION 49. IC 28-8-5-11, AS AMENDED BY P.L.137-2014,SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 11. (a) A person shall not engage in the businessof cashing checks for consideration without first obtaining a license.

(b) Each application for a license shall be in writing in such form asthe director may prescribe and shall include all of the following:

(1) The following information pertaining to the applicant:(A) Name.(B) Residence address.(C) Business address.

(2) The following information pertaining to any individualdescribed in section 12(b)(1) of this chapter:

(A) Name.(B) Residence address.(C) Business address.(D) Whether the person:

(i) is, at the time of the application, under indictment for afelony under the laws of Indiana or any other jurisdiction; or(ii) has been convicted of a felony under the laws of Indianaor any other jurisdiction.

(3) The address where the applicant's office or offices will belocated. If any business, other than the business of cashing checksunder this chapter, will be conducted by the applicant or anotherperson at any of the locations identified under this subdivision,the applicant shall indicate for each location at which anotherbusiness will be conducted:

(A) the nature of the other business;(B) the name under which the other business operates;(C) the address of the principal office of the other business;(D) the name and address of the business's resident agent in

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Indiana; and(E) any other information that the director may require.

(4) If the department of state revenue notifies the department thata person is on the most recent tax warrant list, the departmentshall not issue or renew the person's license until:

(A) the person provides to the department a statement from thedepartment of state revenue that the person's tax warrant hasbeen satisfied; or(B) the department receives a notice from the commissioner ofthe department of state revenue under IC 6-8.1-8-2(k).

(5) Such other data, financial statements, and pertinentinformation as the director may require.

(c) The application shall be filed with a nonrefundable fee fixed bythe department under IC 28-11-3-5.

SECTION 50. IC 28-8-5-18.2 IS ADDED TO THE INDIANACODE AS A NEW SECTION TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2017]: Sec. 18.2. A licensee may carry onother business at a location where the licensee conducts thebusiness of cashing checks unless the licensee carries on otherbusiness for the purpose of evasion or violation of this chapter.

SECTION 51. IC 28-8-5-18.3 IS REPEALED [EFFECTIVE JULY1, 2017]. Sec. 18.3. (a) This section applies if, after a person has beenissued a license or renewal license under this chapter, any of thefollowing apply:

(1) Any business, other than the business of cashing checks underthis chapter, will be conducted by the licensee or another personat any location in Indiana in which the licensee conducts thebusiness of cashing checks under this chapter.(2) Any information concerning other business conducted at thelocations identified in the licensee's application under section11(b)(3) of this chapter changes.

(b) For each location described in subsection (a)(1) or (a)(2), thelicensee shall provide to the department the information required undersection 11(b)(3) of this chapter with respect to that location:

(1) not later than fifteen (15) days after the other business beginsoperating at the location; or(2) if the licensee's next application for a renewal license undersection 15 of this chapter is due before the date described insubdivision (1), in the licensee's next application for a renewallicense under section 15 of this chapter.

SECTION 52. IC 28-10-1-1, AS AMENDED BY P.L.73-2016,SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

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JULY 1, 2017]: Sec. 1. A reference to a federal law or federalregulation in this title is a reference to the law or regulation as in effectDecember 31, 2015. 2016.

SECTION 53. IC 28-11-1-3, AS AMENDED BY P.L.217-2007,SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 3. (a) The ultimate authority for and the powers,duties, management, and control of the department are vested in thefollowing seven (7) members:

(1) The director of the department, who serves as an ex officio,voting member.(2) The following six (6) members appointed by the governor asfollows:

(A) Three (3) members must have practical experience at theexecutive level of a:

(i) state chartered bank;(ii) state chartered savings association; or(iii) state chartered savings bank.

(B) One (1) member must have practical experience at theexecutive level as a:

(i) lender licensed under IC 24-4.5;(ii) mortgage lender licensed under IC 24-4.4;(iii) registrant under IC 24-7;(iv) licensee under IC 28-1-29;(v) licensee under IC 28-7-5;(vi) licensee under IC 28-8-4; or(vii) licensee under IC 28-8-5.

(C) One (1) member must have practical experience at theexecutive level of a state chartered credit union.(D) One (1) member must be appointed with due regard for theconsumer, agricultural, industrial, and commercial interests ofIndiana.

(b) Not more than three (3) members appointed by the governorunder subsection (a)(2) after June 30, 2006, may be affiliated with thesame political party.

SECTION 54. IC 28-11-3-1, AS AMENDED BY P.L.35-2010,SECTION 196, IS AMENDED TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2017]: Sec. 1. (a) The department shall examinethe affairs of every financial institution as often as the departmentconsiders necessary. Examinations may be made without notice to theinstitution to be examined.

(b) In making an examination, the department may examine any ofthe officers or agents of the institution under oath.

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(c) The department may require an independent audit by a certifiedpublic accountant, subject to the standards the department determines.

(d) The department, in the classification of assets, may disregard theamount of an asset in its analysis of capital adequacy of the financialinstitution until the amount of the asset is recovered.

(e) After the examiners complete the examination of a financialinstitution, the examiners:

(1) shall submit their written findings and recommendations to:(A) the board of directors; and(B) other parties authorized by the board of directors andapproved by the director; and(C) in the case of a credit union, the supervisory committeeof the credit union, in addition to the parties set forth inclauses (A) and (B); and

(2) may confer with the parties listed in subdivision (1) on thefindings and recommendations.

(f) Upon the conclusion of an examination, a full, true, and detailedreport of the condition of the financial institution shall be made to thedepartment by the examiners in the form prescribed by the department.

(g) A financial institution subject to examination by the departmentmay not cause, by contract or otherwise, any data processing or othersimilar service to be performed, either on or off its premises, untilwritten assurances are furnished to the department by the financialinstitution and the entity providing the service that the performance ofthe service will be subject to regulation and examination by thedepartment to the same extent as if the service was were beingperformed by the financial institution on its own premises. Entities thatprovide data processing or other similar services to more than one (1)financial institution need only file one (1) written assurance to cover allfinancial institutions to which the entity provides services.

(h) The report of an examination conducted under this section:(1) is the exclusive property of the department; and(2) except as provided in subsection (i), shall not be distributed,published, or duplicated without the prior authorization of thedirector.

(i) A financial institution that is or seeks to become a member of theFederal Home Loan Bank System may provide a copy of a report of anexamination conducted by the department to the Federal Home LoanBank for the confidential use of the Federal Home Loan Bank if thedirector and the Federal Home Loan Bank have entered into a writtenagreement that provides that the report of the examination:

(1) remains the property of the department; and

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(2) is not:(A) subject to inspection under IC 5-14-3;(B) subject to subpoena;(C) subject to discovery; or(D) admissible in evidence in any civil action.

(j) Except as provided in subsection (i), a person who knowingly orintentionally possesses, distributes, publishes, or duplicates a report ofan examination conducted under this section without the priorauthorization of the director commits a Class B misdemeanor.

(k) If a financial institution contracts with an outside vendor toprovide a service that would otherwise be undertaken internally by thefinancial institution and be subject to the department's routineexamination procedures, the person that provides the service to thefinancial institution shall, at the request of the director, submit to anexamination by the department. If the director determines that anexamination under this subsection is necessary or desirable, theexamination may be made at the expense of the person to be examined.If the person to be examined under this subsection refuses to permit theexamination to be made, the director may order any financial institutionthat receives services from the person refusing the examination to:

(1) discontinue receiving one (1) or more services from theperson; or(2) otherwise cease conducting business with the person.

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Speaker of the House of Representatives

President of the Senate

President Pro Tempore

Governor of the State of Indiana

Date: Time:

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