Indiana § 23-2-6-43 - Failure to make physical delivery; defenses

Full text of Indiana Indiana Code § 23-2-6-43 — Failure to make physical delivery; defenses, with citation guidance and answers to common questions.

§ 23-2-6-43. Failure to make physical delivery; defenses

Sec. 43. In any complaint, information, indictment, writ, or proceeding brought under this chapter that alleges a violation of section 17 of this chapter solely on the failure in an individual case to make physical delivery within the applicable time under section 19(a)(2) of this chapter, it is a defense if both of the following are shown:

(1) Failure to make physical delivery was due solely to factors beyond the control of all of the following:

(A) The seller.

(B) Officers, directors, partners, agents, servants, or employees of the seller.

(D) Each person who directly or indirectly controls or is controlled by the seller or by any person described in clause (B) or (C).

(E) The seller's affiliates, subsidiaries, and successors.

(2) Physical delivery was completed within a reasonable time under the applicable circumstances.

As added by P.L.177-1991, SEC.10.

IC 23-2.5ARTICLE 2.5. LOAN BROKERS

Ch. 1.Definitions Ch. 2.Loan Broker Regulation Account Ch. 3.Licensure and Loan Processing Company Notice Filing Requirements Ch. 4.License Issuance and Renewal Ch. 5.Loan Processing Company Notice Filing and Renewal Ch. 6.Education and Examination Ch. 7.Loan Broker Offices and Personnel Ch. 8.Conduct of Business Ch. 9.Residential Mortgage Loan Transaction Documents Ch. 10.Prohibited Acts Ch. 11.Violations and Civil Enforcement Ch. 12.Effect of Repeal of IC 23-2-5

IC 23-2.5-1Chapter 1. Definitions

23-2.5-1-1Application of chapter 23-2.5-1-2"Appraisal company" 23-2.5-1-3"Bona fide third party fee" 23-2.5-1-4"Borrower's residential mortgage loan application information" 23-2.5-1-5"Branch manager" 23-2.5-1-6"Branch office" 23-2.5-1-7"Branch office license" 23-2.5-1-8"Commissioner" 23-2.5-1-9"Depository institution" 23-2.5-1-10"Encrypted" 23-2.5-1-11"Immediate family" 23-2.5-1-11.5"Individual" 23-2.5-1-12"Licensee" 23-2.5-1-13"Loan" 23-2.5-1-14"Loan broker" 23-2.5-1-15"Loan broker employee" 23-2.5-1-16"Loan broker license" 23-2.5-1-17"Loan broker office" 23-2.5-1-18"Loan processing activities" 23-2.5-1-19"Loan processing company" 23-2.5-1-20"Loan processor" 23-2.5-1-21"Mortgage loan origination activities" 23-2.5-1-22"Mortgage loan originator" 23-2.5-1-23"Mortgage loan originator license" 23-2.5-1-24"Nationwide Multistate Licensing System" 23-2.5-1-25"Person" 23-2.5-1-26"Personal information" 23-2.5-1-27"Manager" 23-2.5-1-28Repealed 23-2.5-1-29"Principal place of business" 23-2.5-1-30"Real estate appraiser" 23-2.5-1-31"Real estate brokerage activity" 23-2.5-1-32"Redacted" 23-2.5-1-33"Registered mortgage loan originator" 23-2.5-1-34"Residential mortgage loan" 23-2.5-1-35"Residential real estate" 23-2.5-1-36"Securities division" 23-2.5-1-37"State licensed mortgage loan originator" 23-2.5-1-38"Ultimate equitable owner" 23-2.5-1-39"Unique identifier"

IC 23-2.5-1-1Application of chapter Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-2"Appraisal company" Sec. 2. "Appraisal company" means a business entity that:

(1) performs real estate appraisals on a regular basis for compensation through one (1) or more owners, officers, employees, or agents; or

(2) holds itself out to the public as performing real estate appraisals.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-3"Bona fide third party fee" Sec. 3. "Bona fide third party fee", with respect to a residential mortgage loan, includes any of the following:

(1) Fees for real estate appraisals. However, if the residential mortgage loan is governed by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (12 U.S.C. 3331 through 3352), the fee for an appraisal performed in connection with the loan is not a bona fide third party fee unless the appraisal is performed by a person that is licensed or certified under IC 25-34.1-3-8.

(2) Fees for title examination, abstract of title, title insurance, property surveys, or similar purposes.

(3) Notary and credit report fees.

(4) Fees for the services provided by a loan broker in procuring possible business for a creditor if the fees are paid by the creditor.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-4"Borrower's residential mortgage loan application information" Sec. 4. "Borrower's residential mortgage loan application information" means the:

(1) address of proposed residential real property to be mortgaged; and

(2) borrower's essential personal and financial information necessary for an informed credit decision to be made concerning the borrower's mortgage loan application.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-5"Branch manager" Sec. 5. "Branch manager" means a mortgage loan originator or individual who is:

(1) licensed under this article; and

(2) designated by a loan broker to supervise and oversee mortgage loan origination activities conducted at a branch office.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.1.

IC 23-2.5-1-6"Branch office" Sec. 6. "Branch office" means a loan broker office other than the loan broker's principal place of business.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-7"Branch office license" Sec. 7. "Branch office license" means a license issued by the commissioner authorizing a loan broker to operate a branch office.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-8"Commissioner" Sec. 8. "Commissioner" refers to the securities commissioner appointed under IC 23-19-6-1(a).

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-9"Depository institution" Sec. 9. "Depository institution" has the meaning set forth in the Federal Deposit Insurance Act (12 U.S.C. 1813(c)) and includes a credit union.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-10"Encrypted" Sec. 10. "Encrypted", with respect to personal information, means that the personal information:

(1) has been transformed through the use of an algorithmic process into a form in which there is a low probability of assigning meaning without use of a confidential process or key; or

(2) is secured by another method that renders the personal information unreadable or unusable.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-11"Immediate family" Sec. 11. "Immediate family", with respect to an individual, refers to:

(1) the individual's spouse who resides in the individual's household; and

(2) any dependent child of the individual.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-11.5"Individual" Sec. 11.5. "Individual" means a natural person.

As added by P.L.89-2024, SEC.2.

IC 23-2.5-1-12"Licensee" Sec. 12. "Licensee" means a person that is issued a license under this article.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-13"Loan" Sec. 13. "Loan" means an agreement to advance money or property in return for the promise to make payments for the money or property.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-14"Loan broker" Sec. 14. (a) "Loan broker" means a person who, in return for consideration from any source:

(1) procures;

(2) attempts to procure; or

(3) assists in procuring;

a residential mortgage loan from a third party, regardless of whether the person seeking the loan obtains the loan.

(b) The term "loan broker" does not include:

(1) a supervised financial organization (as defined in IC 26-1-4-102.5), including a bank, savings bank, trust company, savings association, or credit union;

(2) another financial institution that is:

(A) regulated by an agency of the United States or a state; and

(B) regularly actively engaged in the business of:

(i) making consumer loans that are not secured by real estate; or

(ii) taking assignment of consumer sales contracts that are not secured by real estate;

(3) an insurance company;

(4) a person arranging financing for the sale of the person's product; or

(5) a creditor that is licensed under IC 37-1-3-5.

As added by P.L.175-2019, SEC.2. Amended by P.L.115-2026, SEC.19.

IC 23-2.5-1-15"Loan broker employee" Sec. 15. "Loan broker employee" means an individual:

(1) who is an employee of a single loan broker who is licensed under this article;

(2) for whom the loan broker, in addition to providing a wage or salary:

(A) pays Social Security and unemployment taxes; and

(B) withholds local, state, and federal income taxes;

(3) who acts at the direction of, and subject to the supervision of, the loan broker; and

(4) who performs loan processing activities on behalf of the loan broker.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.3.

IC 23-2.5-1-16"Loan broker license" Sec. 16. "Loan broker license" means a license issued by the commissioner authorizing a person to engage in the activities of a loan broker.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-17"Loan broker office" Sec. 17. "Loan broker office" means a fixed physical location:

(1) at which a person holds itself out as engaging in the activities of a loan broker;

(2) the address of which appears on business cards, on stationery, or in advertising in connection with the activities of a loan broker;

(3) at which the person's name, advertising, promotional materials, or signage suggests that residential mortgage loans are originated, negotiated, funded, or serviced; or

(4) where the person otherwise engages in conduct that suggests to the public that the activities of a loan broker may occur at the location.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-18"Loan processing activities" Sec. 18. (a) "Loan processing activities" means clerical or support duties performed on behalf of a loan broker with respect to residential mortgage loan origination activities performed by the loan broker.

(b) The term "loan processing activities" includes the following:

(1) The receipt, collection, distribution, and analysis of information commonly used in the processing of a residential mortgage loan.

(2) Communicating with a borrower or potential borrower to obtain the information necessary for the processing of a residential mortgage loan, to the extent that the communication does not include:

(A) offering or negotiating loan rates or terms; or

(B) counseling borrowers or potential borrowers about residential mortgage loan rates or terms.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-19"Loan processing company" Sec. 19. "Loan processing company" means a person that:

(1) performs loan processing activities for compensation; and

(2) holds itself out to the public as engaging in loan processing activities.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-20"Loan processor" Sec. 20. "Loan processor" means an individual who performs loan processing activities for compensation on behalf of a loan processing company and is not a loan broker employee.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-21"Mortgage loan origination activities" Sec. 21. "Mortgage loan origination activities" means performance of any of the following activities for compensation or gain in connection with a residential mortgage loan:

(1) Receiving or recording a borrower's or potential borrower's residential mortgage loan application information in any form for use in a credit decision by a creditor.

(2) Offering to negotiate or negotiating terms of a residential mortgage loan.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-22"Mortgage loan originator" Sec. 22. (a) "Mortgage loan originator" means an individual engaged in mortgage loan origination activities.

(b) The term "mortgage loan originator" does not include a person who:

(1) performs purely administrative or clerical tasks on behalf of a mortgage loan originator or acts as a loan processor;

(2) performs only real estate brokerage activities and is licensed in accordance with IC 25-34.1 or the applicable laws of another state, unless the person is compensated by a creditor, a loan broker, a mortgage loan originator, or an agent of a creditor, a loan broker, or a mortgage loan originator; or

(3) is involved only in extensions of credit relating to time share plans (as defined in 11 U.S.C. 101(53D)).

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-23"Mortgage loan originator license" Sec. 23. "Mortgage loan originator license" means a license issued by the commissioner authorizing an individual to act as a mortgage loan originator on behalf of a loan broker.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-24"Nationwide Multistate Licensing System" Sec. 24. "Nationwide Multistate Licensing System" refers to a multistate licensing system owned and operated by the State Regulatory Registry, LLC, or by a successor or an affiliated entity, for the licensing and registration of:

(1) creditors;

(2) mortgage loan originators;

(3) other financial services entities; and

(4) employees and agents of the persons described in subdivisions (1) through (3).

The term includes "NMLS" and any other name or acronym that may be assigned to the system by the State Regulatory Registry, LLC, or by a successor or an affiliated entity of the State Regulatory Registry, LLC.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-25"Person" Sec. 25. "Person" means an individual, a partnership, a trust, a corporation, a limited liability company, a limited liability partnership, a sole proprietorship, a joint venture, a joint stock company, or another group or entity, however organized.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-26"Personal information" Sec. 26. "Personal information" includes the following:

(1) An individual's first and last names or first initial and last name.

(2) Any of the following data elements:

(A) A Social Security number.

(B) A driver's license number.

(D) A credit card number.

(E) A financial account number or debit card number in combination with a security code, password, or access code that would permit access to the person's account.

(3) With respect to an individual, any of the following:

(A) Address.

(B) Telephone number.

(i) income or other compensation;

(ii) credit history;

(iii) credit score;

(iv) assets;

(v) liabilities; or

(vi) employment history.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-27"Manager" Sec. 27. "Manager" means an individual who has at least three (3) years of experience as a mortgage loan originator and is principally responsible for the supervision and management of the employees and business affairs of not more than five (5) loan broker offices under one (1) company.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.4.

IC 23-2.5-1-28RepealedAs added by P.L.175-2019, SEC.2. Repealed by P.L.89-2024, SEC.5.

IC 23-2.5-1-29"Principal place of business" Sec. 29. "Principal place of business" means the loan broker office designated by a loan broker or an applicant for a loan broker license as the primary or main office. If a loan broker operates only one (1) loan broker office, the loan broker office is considered to be the principal place of business of the loan broker.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-30"Real estate appraiser" Sec. 30. "Real estate appraiser" means a person who:

(1) is licensed as a real estate broker under IC 25-34.1 and performs real estate appraisals within the scope of the person's license;

(2) holds a real estate appraiser license or certificate issued under IC 25-34.1-3-8; or

(3) otherwise performs real estate appraisals in Indiana.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-31"Real estate brokerage activity" Sec. 31. "Real estate brokerage activity" means offering or providing real estate brokerage services to the public, including the following:

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

(2) Bringing together parties interested in the sale, lease, or exchange of real property.

(3) Negotiating, on behalf of a party, any part of a contract concerning the sale, lease, or exchange of real property, other than in connection with obtaining or providing financing for the transaction.

(4) Engaging in an activity for which the person performing the activity is required to be licensed under IC 25-34.1 or the applicable laws of another state.

(5) Offering to engage in any activity, or to act in any capacity with respect to any activity, described in subdivisions (1) through (4).

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-32"Redacted" Sec. 32. "Redacted", with respect to personal information, means that the personal information has been altered or truncated so that not more than the last four (4) digits of:

(1) a Social Security number;

(2) a driver's license number;

(3) a state identification number; or

(4) an account number;

are accessible as part of the personal information.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-33"Registered mortgage loan originator" Sec. 33. "Registered mortgage loan originator" means a mortgage loan originator who:

(1) is an employee of:

(A) a depository institution;

(B) a subsidiary that is:

(i) owned and controlled by a depository institution; and

(ii) regulated by the federal financial institutions regulatory agencies (as defined in 12 U.S.C. 3350(6)); or

(2) is registered with and maintains a unique identifier with the Nationwide Multistate Licensing System.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-34"Residential mortgage loan" Sec. 34. "Residential mortgage loan" means a loan:

(1) that is or will be used primarily for personal, family, or household purposes; and

(2) that is secured by a mortgage (or another equivalent consensual security interest) on:

(A) a dwelling (as defined in Section 103(w) of the federal Truth in Lending Act (15 U.S.C. 1602(w)); or

(B) residential real estate.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-35"Residential real estate" Sec. 35. "Residential real estate" means real property:

(1) that is located in Indiana; and

(2) upon which a dwelling is constructed or intended to be constructed.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-36"Securities division" Sec. 36. "Securities division" refers to the division of the office of the secretary of state described in IC 23-19-6-1(a).

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-37"State licensed mortgage loan originator" Sec. 37. "State licensed mortgage loan originator" means an individual who:

(1) is a mortgage loan originator;

(2) is not an employee of:

(A) a depository institution;

(B) a subsidiary that is:

(i) owned and controlled by a depository institution; and

(ii) regulated by the federal financial institutions regulatory agencies (as defined in 12 U.S.C. 3350(6)); or

(3) is licensed by:

(A) a state; or

(B) the Secretary of the United States Department of Housing and Urban Development under Section 1508 of the S.A.F.E. Mortgage Licensing Act of 2008 (Title V of P.L.110-289); and

(4) is registered as a mortgage loan originator with, and maintains a unique identifier through, the Nationwide Multistate Licensing System.

As added by P.L.175-2019, SEC.2. Amended by P.L.211-2019, SEC.30.

IC 23-2.5-1-38"Ultimate equitable owner" Sec. 38. "Ultimate equitable owner" means a person that, directly or indirectly, owns or controls ten percent (10%) or more of the equity interest in a loan broker, regardless of whether the person owns or controls the equity interest through:

(1) one (1) or more other persons; or

(2) one (1) or more proxies, powers of attorney, or variances.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-1-39"Unique identifier" Sec. 39. "Unique identifier" means a number or other identifier that:

(1) permanently identifies a:

(A) loan broker;

(B) mortgage loan originator; or

(2) is assigned by protocols established by the Nationwide Mortgage Licensing System and the federal financial institutions regulatory agencies (as defined in 12 U.S.C. 3350(6)) to facilitate the:

(A) electronic tracking of; and

(B) uniform identification of, and public access to:

(i) the employment history of; and

(ii) any publicly adjudicated disciplinary and enforcement actions against;

a person described in subdivision (1).

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.6.

IC 23-2.5-2Chapter 2. Loan Broker Regulation Account

23-2.5-2-1Loan broker regulation account

IC 23-2.5-2-1Loan broker regulation account Sec. 1. (a) The loan broker regulation account is created in the state general fund. The money in the loan broker regulation account may be used only for the regulation of loan brokers and mortgage loan originators under this article.

(b) The loan broker regulation account shall be administered by the treasurer of state. Except as provided in subsection (d), all fees and funds accruing from the administration of this article shall be accounted for by the commissioner and shall be deposited with the treasurer of state who shall deposit them in the loan broker regulation account in the state general fund.

(1) is continuously appropriated for the purposes of this article; and

(2) does not revert to any other account within the state general fund at the end of a state fiscal year.

(d) All expenses incurred in the administration of this article shall be paid from appropriations made from the state general fund. However, costs of investigations incurred under this article shall be paid from, and disgorgements of profits and civil penalties recovered under this article shall be deposited in, the securities division enforcement account established by IC 23-19-6-1(f). The funds in the securities division enforcement account shall be available, with the approval of the budget agency, to augment and supplement the funds appropriated for the administration of this article.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.7.

IC 23-2.5-3Chapter 3. Licensure and Loan Processing Company Notice Filing Requirements

23-2.5-3-1Loan broker license required 23-2.5-3-2Mortgage loan originator license required 23-2.5-3-3Loan processing activities 23-2.5-3-4Branch office license required 23-2.5-3-5Loan processing company notice filing 23-2.5-3-6Registered mortgage loan originator license not required

IC 23-2.5-3-1Loan broker license required Sec. 1. (a) A person may not engage in the activities of a loan broker in Indiana unless the person first obtains a:

(1) unique identifier from the Nationwide Multistate Licensing System; and

(2) loan broker license from the commissioner.

(b) A person desiring to engage in the activities of a loan broker shall apply to the commissioner for a loan broker license under this article.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-3-2Mortgage loan originator license required Sec. 2. (a) An individual may not act as a manager in Indiana unless the individual first obtains a:

(1) unique identifier from the Nationwide Multistate Licensing System; and

(2) license under this article.

(b) An individual may not act as a mortgage loan originator in Indiana unless the individual first obtains a:

(1) unique identifier from the Nationwide Multistate Licensing System; and

(2) mortgage loan originator license from the commissioner.

(c) An individual desiring to act as a manager or mortgage loan originator on behalf of a loan broker shall apply to the commissioner for a mortgage loan originator license under this article.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.8.

IC 23-2.5-3-3Loan processing activities Sec. 3. An individual may not engage in loan processing activities unless the individual:

(1) is employed by a loan processing company; and

(2) has met the requirements described in IC 23-2.5-5-4.

As added by P.L.175-2019, SEC.2. Amended by P.L.205-2021, SEC.3.

IC 23-2.5-3-4Branch office license required Sec. 4. (a) A loan broker may not operate a branch office in Indiana unless the loan broker first obtains a:

(1) unique identifier from the Nationwide Multistate Licensing System; and

(2) branch office license from the commissioner.

(b) A loan broker shall apply to the commissioner for a branch office license under this article.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-3-5Loan processing company notice filing Sec. 5. Before engaging in loan processing activities, a loan processing company shall file a loan processing company notice filing.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-3-6Registered mortgage loan originator license not required Sec. 6. A registered mortgage loan originator is not required to obtain a license under this article.

As added by P.L.205-2021, SEC.4.

IC 23-2.5-4Chapter 4. License Issuance and Renewal

23-2.5-4-1Loan broker license application requirements 23-2.5-4-2Repealed 23-2.5-4-3Mortgage loan originator license application requirements 23-2.5-4-4Branch office license application requirements 23-2.5-4-5Issuance and renewal of license 23-2.5-4-6License renewal required 23-2.5-4-7Mortgage loan originator license; effective only with employment; transfer of license; notice of termination 23-2.5-4-8Notice of change in material fact or statement in license application 23-2.5-4-9Agent for service of process 23-2.5-4-10National criminal history background check 23-2.5-4-11Financial responsibility of applicant 23-2.5-4-12Electronic surety bond 23-2.5-4-13Evidence of compliance 23-2.5-4-14Unique identifier; use restricted

IC 23-2.5-4-1Loan broker license application requirements Sec. 1. (a) An application for issuance or renewal of a loan broker license must contain the following:

(1) Consent to service of process under section 9 of this chapter.

(2) Evidence of the bond required by section 12 of this chapter.

(3) An application fee of two hundred dollars ($200), plus one hundred dollars ($100) for each ultimate equitable owner.

(4) An affidavit affirming that none of the applicant's ultimate equitable owners, directors, managers, or officers have been convicted, in any jurisdiction, of:

(A) a felony during the previous seven (7) years; or

(B) an offense involving fraud or deception that is punishable by at least one (1) year of imprisonment;

unless the affidavit is waived by the commissioner under subsection (b).

(5) Evidence that the applicant, if the applicant is an individual, has completed the education requirements under IC 23-2.5-6.

(6) The name and license number of each mortgage loan originator to be employed by the loan broker.

(7) The name and license number of each manager to be employed by the loan broker.

(8) The location of each loan broker office to be operated by the loan broker. If the loan broker operates only one (1) loan broker office or one (1) location at which mortgage loan origination activities occur, that location must be designated as the loan broker's principal place of business.

(9) The name of the individual employed by the loan broker who will serve as branch manager for any branch office operated by the loan broker.

(10) For each ultimate equitable owner, the following information:

(A) The name of the ultimate equitable owner.

(B) The address of the ultimate equitable owner, including the home address of the ultimate equitable owner if the ultimate equitable owner is an individual.

(C) The telephone number of the ultimate equitable owner, including the home telephone number if the ultimate equitable owner is an individual.

(D) The ultimate equitable owner's Social Security number and date of birth, if the ultimate equitable owner is an individual.

(b) Upon good cause shown, the commissioner may waive the requirements of subsection (a)(4) for one (1) or more of an applicant's ultimate equitable owners, directors, managers, or officers.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.9.

IC 23-2.5-4-2RepealedAs added by P.L.175-2019, SEC.2. Repealed by P.L.89-2024, SEC.10.

IC 23-2.5-4-3Mortgage loan originator license application requirements Sec. 3. (a) An application for issuance or renewal of a mortgage loan originator license must be made on a form prescribed by the commissioner.

(b) An application under subsection (a) must include the following information for the individual who seeks to be licensed as a mortgage loan originator:

(1) The name of the individual.

(2) The home address of the individual.

(3) The home telephone number of the individual.

(4) The individual's Social Security number and date of birth.

(5) The name of the:

(A) loan broker; or

(B) applicant for a loan broker license;

for whom the individual will act as a mortgage loan originator.

(6) Consent to service of process under section 9 of this chapter.

(7) Evidence that the individual has completed the education requirements described in IC 23-2.5-6.

(8) An affidavit completed in the manner prescribed by the commissioner stating the address of each location where the individual intends to habitually or repeatedly conduct mortgage loan origination activities.

(9) An application fee of fifty dollars ($50).

(10) All:

(A) registration numbers previously issued to the individual under IC 23-2-5, if the applicant was registered as an originator under IC 23-2-5 before its repeal on July 1, 2019; and

(B) license numbers previously issued to the individual under IC 23-2-5 (before its repeal) or this article.

(11) An indication as to whether the mortgage loan originator is the branch manager of a loan broker office and the address of the loan broker office.

(12) Written authorization for the commissioner or an agent of the commissioner to obtain a consumer report (as defined in IC 24-5-24-2) concerning the individual.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.11.

IC 23-2.5-4-4Branch office license application requirements Sec. 4. (a) An application for issuance or renewal of a branch office license must be made on a form prescribed by the commissioner.

(b) An application under subsection (a) must include the following information for the location for which licensure as a branch office is sought:

(1) The address of the branch office.

(2) The name and license number of the manager who will be designated by the loan broker to supervise the branch office.

(3) The name and license number of the individual who will be designated to act as branch manager of the branch office.

(4) An application fee of seventy-five dollars ($75).

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.12.

IC 23-2.5-4-5Issuance and renewal of license Sec. 5. (a) The commissioner shall issue a license and license number to an applicant for a license issued under this chapter if the applicant meets the applicable licensure requirements under this chapter.

(b) A license issued under this chapter expires on December 31 of the year during which the license is issued.

(c) If an initial or a renewal application for a license is denied or withdrawn, the commissioner shall retain the application fee paid.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-4-6License renewal required Sec. 6. (a) A licensee under this chapter may not continue to:

(1) act as a loan broker or mortgage loan originator; or

(2) operate as a branch office;

unless the licensee annually renews the license.

(b) A licensee under this chapter shall renew the license by:

(1) filing with the commissioner, before the date on which the license expires, an application containing any information the commissioner requires to indicate any material change from the information contained in the applicant's original application or any previous application; and

(2) including, with the filing under subdivision (1), the applicable application fee specified in this chapter.

As added by P.L.175-2019, SEC.2. Amended by P.L.158-2022, SEC.1; P.L.89-2024, SEC.13.

IC 23-2.5-4-7Mortgage loan originator license; effective only with employment; transfer of license; notice of termination Sec. 7. (a) The license of a mortgage loan originator is not effective during any period during which the mortgage loan originator is not employed by a loan broker that is licensed under this article.

(b) If a licensed mortgage loan originator seeks to transfer the licensee's license to another loan broker who desires to have the licensee act as a manager or mortgage loan originator, whichever applies, the licensee shall, before acting as a manager or mortgage loan originator for the new employer, submit to the commissioner, on a form prescribed by the commissioner, a license application required by section 3 of this chapter.

(1) voluntarily by the manager or mortgage loan originator; or

(2) by the loan broker employing the manager or mortgage loan originator;

the loan broker shall, not later than five (5) days after the date of the termination, notify the commissioner of the termination and the reasons for the termination.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.14.

IC 23-2.5-4-8Notice of change in material fact or statement in license application Sec. 8. (a) If a material fact or statement included in an application for a license under this chapter changes after the application has been submitted, the applicant shall provide written notice to the commissioner of the change.

(b) The commissioner may deny issuance, revoke, or refuse to renew a license under this article if the applicant or licensee:

(1) fails to provide the written notice required by this section within two (2) business days after the date on which the applicant or licensee discovers or should have discovered the change; or

(2) is not qualified for licensure under this article as a result of the change in a material fact or statement.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-4-9Agent for service of process Sec. 9. An applicant for licensure, or renewal of a license, under this chapter shall file with the commissioner, in a form prescribed by the commissioner, an irrevocable consent appointing the secretary of state as the applicant's agent for service of process in any noncriminal suit, action, or proceeding against the applicant arising from the violation of this article. Service shall be made in accordance with the Indiana Rules of Trial Procedure.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-4-10National criminal history background check Sec. 10. (a) At the time of application for an initial license under this chapter, the commissioner shall require the following to submit fingerprints for a national criminal history background check (as defined in IC 10-13-3-12) for use by the commissioner in determining whether the equitable owner of a loan broker, an individual described in subdivision (1), or the applicant should be denied issuance of a license under this chapter for a reason set forth in IC 23-2.5-11-1 or IC 23-2.5-11-2:

(1) In the case of an applicant for licensure as a loan broker, each ultimate equitable owner, equitable owner, director, manager, and officer.

(2) An applicant for licensure as a mortgage loan originator.

(b) Every three (3) years at the time of application for renewal of a license issued under this chapter, beginning with the third calendar year following the calendar year during which the initial license is issued, the commissioner shall require the following to submit fingerprints for a national criminal history background check (as defined in IC 10-13-3-12) for use by the commissioner in determining whether the equitable owner of a loan broker, an individual described in subdivision (1), or the applicant should be denied renewal of a license under this chapter for a reason set forth in IC 23-2.5-11-1 or IC 23-2.5-11-2:

(1) In the case of an applicant for licensure as a loan broker, each ultimate equitable owner, equitable owner, director, manager, and officer.

(2) An applicant for licensure as a mortgage loan originator.

(c) The individual whose fingerprints are submitted under this section shall pay any fees or costs associated with the fingerprints and background check required by this section.

(d) The commissioner may not release the results of a background check required by this section to any private entity.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.15.

IC 23-2.5-4-11Financial responsibility of applicant Sec. 11. In reviewing a consumer report obtained under section 3(b)(12) of this chapter, the commissioner may consider one (1) or more of the following in determining whether the individual applicant has demonstrated financial responsibility:

(1) Bankruptcies filed by the individual during the most recent ten (10) years.

(2) Current outstanding civil judgments against the individual, except judgments resulting solely from medical expenses owed by the individual.

(3) Current outstanding tax liens or other government liens or filings.

(4) Foreclosure actions filed during the most recent three (3) years against property owned by the individual.

(5) Any pattern of seriously delinquent accounts associated with the individual during the most recent three (3) years.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.16.

IC 23-2.5-4-12Electronic surety bond Sec. 12. A loan broker shall maintain an electronic surety bond that:

(1) is satisfactory to the commissioner;

(2) is in the amount of sixty thousand dollars ($60,000); and

(3) covers the activities of each manager and mortgage loan originator employed by the loan broker.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.17.

IC 23-2.5-4-13Evidence of compliance Sec. 13. (a) The commissioner may request evidence of compliance with this chapter at any of the following times:

(1) The time of application for an initial license.

(2) The time of renewal of a license.

(3) Any other time considered necessary by the commissioner.

(b) For purposes of subsection (a), evidence of compliance with this chapter must include a criminal background check, including a national criminal history background check (as defined in IC 10-13-3-12) by the Federal Bureau of Investigation.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-4-14Unique identifier; use restricted Sec. 14. A unique identifier obtained by an individual from the Nationwide Multistate Licensing System as required by IC 23-2.5-3-1, IC 23-2.5-3-2, and IC 23-2.5-3-3 may not be used for purposes other than the purposes set forth in the S.A.F.E. Mortgage Licensing Act of 2008 (Title V of P.L.110-289).

As added by P.L.175-2019, SEC.2.

IC 23-2.5-5Chapter 5. Loan Processing Company Notice Filing and Renewal

23-2.5-5-1Loan processing company notice filing 23-2.5-5-2Form and content of loan processing company notice filing 23-2.5-5-3Loan processing company notice filing; annual renewal 23-2.5-5-4Employment for loan processing activities; requirements 23-2.5-5-5Burden of proof of compliance 23-2.5-5-6Loan processing company or loan processor violations 23-2.5-5-7Agent for service of process 23-2.5-5-8Ceasing loan processing activities; requirements

IC 23-2.5-5-1Loan processing company notice filing Sec. 1. Before engaging in loan processing activities, a loan processing company shall file, via the Nationwide Multistate Licensing System, a loan processing company notice filing.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-5-2Form and content of loan processing company notice filing Sec. 2. A loan processing company notice filing must be made on a form prescribed by the commissioner and include all of the following:

(1) The loan processing company's business name, address, and state of incorporation or business registration.

(2) The names of the owners, officers, members, or partners who control the loan processing company.

(3) The name of each individual who is employed by the loan processing company, including the unique identifier from the Nationwide Multistate Licensing System of each loan processor.

(4) The name and license number of each loan broker who:

(A) is licensed or required to be licensed under this article; and

(B) engaged the loan processing company to perform loan processing activities during the preceding calendar year.

(5) An attestation stating that each loan processor employed by the loan processing company has completed the education and examination requirements of a mortgage loan originator license under this article.

(6) Consent to service of process as described in section 7 of this chapter.

(7) An application fee of twenty-five dollars ($25).

As added by P.L.175-2019, SEC.2. Amended by P.L.158-2022, SEC.2.

IC 23-2.5-5-3Loan processing company notice filing; annual renewal Sec. 3. (a) A loan processing company notice filing described in section 2 of this chapter:

(1) expires on December 31 of each year; and

(2) must be refiled annually.

(b) A loan processing company shall update and renew the loan processing company's notice filing before the date on which the loan processing company notice filing expires by resubmitting the information and fee set forth in section 2 of this chapter.

(c) A loan processing company that engages in loan processing activities without filing or renewing a loan processing company notice filing as required by this chapter violates this article.

As added by P.L.175-2019, SEC.2. Amended by P.L.158-2022, SEC.3.

IC 23-2.5-5-4Employment for loan processing activities; requirements Sec. 4. A loan processing company may not employ an individual to engage in loan processing activities unless the individual:

(1) has completed the education and examination requirements for a mortgage loan originator; and

(2) is registered to conduct business in Indiana through the Nationwide Multistate Licensing System.

As added by P.L.175-2019, SEC.2. Amended by P.L.205-2021, SEC.5.

IC 23-2.5-5-5Burden of proof of compliance Sec. 5. A loan processing company bears the burden of showing that the loan processing company is in compliance with this chapter.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-5-6Loan processing company or loan processor violations Sec. 6. (a) If the commissioner determines that a loan processing company or loan processor has violated this article, the commissioner may issue any notice or order determined by the commissioner to be in the public interest.

(b) A notice or order issued by the commissioner under subsection (a):

(1) may include remedies; and

(2) must follow the procedural requirements;

specified in IC 23-2.5-11.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-5-7Agent for service of process Sec. 7. (a) A loan processing company shall, before engaging in loan processing activities, file with the commissioner on a form prescribed by the commissioner an irrevocable consent appointing the secretary of state as the loan processing company's agent to receive service of process in a noncriminal suit, action, or proceeding against the loan processing company arising from a violation of this article.

(b) Service of process described in subsection (a) must be made in accordance with Indiana Rules of Trial Procedure.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-5-8Ceasing loan processing activities; requirements Sec. 8. If a loan processing company ceases to engage in loan processing activities for any reason, the loan processing company shall do the following:

(1) Before ceasing loan processing activities, arrange for the preservation and maintenance of the records described in IC 23-2.5-9-2 for the remainder of the two (2) year maintenance period required by IC 23-2.5-9-2.

(2) Notify the commissioner of the exact physical address where the records will be maintained under subdivision (1).

As added by P.L.175-2019, SEC.2.

IC 23-2.5-6Chapter 6. Education and Examination

23-2.5-6-1Academic education required for licensure 23-2.5-6-2Continuing academic education required for licensure 23-2.5-6-3License lapse or expiration; educational requirements for licensure 23-2.5-6-4Commissioner review and approval of internal academic education programs 23-2.5-6-5Mortgage loan originator; written examination requirements 23-2.5-6-6Mortgage loan originator activities license or registration lapse or expiration; written examination for licensure or registration 23-2.5-6-7Written examination; time to obtain license

IC 23-2.5-6-1Academic education required for licensure Sec. 1. (a) An applicant for an initial license under IC 23-2.5-4 shall provide to the commissioner evidence that, during the twenty-four (24) month period immediately preceding the application, the applicant completed at least twenty (20) hours of academic education that is acceptable to the commissioner and approved by the Nationwide Multistate Licensing System.

(b) The education hours required by subsection (a) must include the following:

(1) Three (3) hours of federal law and regulations concerning residential mortgage lending.

(2) Three (3) hours of ethics, including instruction on fraud, consumer protection, and fair lending practices.

(3) Two (2) hours of training concerning lending standards for nontraditional residential mortgage loan products.

(4) Two (2) hours of state law and rules concerning residential mortgage lending.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-6-2Continuing academic education required for licensure Sec. 2. (a) To maintain a license issued under IC 23-2.5-4, an individual shall provide to the commissioner evidence that the individual has, during each calendar year after the year during which the license is initially issued, completed at least eight (8) hours of academic education that is acceptable to the commissioner and approved by the Nationwide Multistate Licensing System.

(b) The education hours required by subsection (a) must include the following:

(1) Three (3) hours of federal law and regulations concerning residential mortgage lending.

(2) Two (2) hours of ethics, including instruction on fraud, consumer protection, and fair lending practices.

(3) Two (2) hours of training concerning lending standards for nontraditional residential mortgage loan products.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-6-3License lapse or expiration; educational requirements for licensure Sec. 3. If a license issued under IC 23-2.5-4 lapses or expires for a period of at least five (5) years, the former licensee must complete the initial license educational requirements specified in section 1 of this chapter.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-6-4Commissioner review and approval of internal academic education programs Sec. 4. (a) In determining the acceptability of academic education, the commissioner shall consider approval of a licensee's internal academic education programs completed by employees.

(b) The commissioner may charge a fee, in an amount prescribed by the commissioner, for the commissioner's review of an education course to determine acceptability of the course as required by this chapter.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-6-5Mortgage loan originator; written examination requirements Sec. 5. (a) The commissioner shall require an applicant for licensure as a mortgage loan originator under IC 23-2.5-4 to pass a written examination prepared and administered by the commissioner or an agent appointed by the commissioner and approved by the Nationwide Multistate Licensing System.

(b) The written examination required by this section must measure the applicant's knowledge and comprehension in appropriate subject areas, including the following:

(1) Ethics.

(2) Federal laws and regulations concerning the origination of residential mortgage loans.

(3) State laws and rules concerning the origination of residential mortgage loans.

(c) An individual who answers at least seventy-five percent (75%) of the questions on the written examination correctly is considered to have passed the examination.

(d) An individual who does not pass the written examination may retake the examination not more than two (2) additional times, with each subsequent attempt occurring at least thirty (30) days after the date on which the individual last sat for the examination.

(e) If an individual fails three (3) consecutive examinations, the individual must wait to retake the examination until at least six (6) months after the date on which the individual sat for the third examination.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.18.

IC 23-2.5-6-6Mortgage loan originator activities license or registration lapse or expiration; written examination for licensure or registration Sec. 6. If an individual who has been issued a mortgage loan originator license under this article, or a license or registration issued by another state or jurisdiction allowing the individual to perform mortgage loan origination activities:

(1) allows the individual's license or registration to lapse; or

(2) otherwise has not been a registered mortgage loan originator, been issued a mortgage loan originator license, or otherwise maintained a license or registration to perform mortgage loan origination activities;

for a period of at least five (5) years, the individual must pass the written examination required by this chapter as a condition of relicensure or reregistration.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.19.

IC 23-2.5-6-7Written examination; time to obtain license Sec. 7. If an individual does not obtain a license within two (2) years after the date on which the individual passes the written examination for the license as required by this chapter, the commissioner may not issue the license to the individual unless the individual passes the written examination again.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-7Chapter 7. Loan Broker Offices and Personnel

23-2.5-7-1Loan broker employment of manager or mortgage loan originator; license required 23-2.5-7-2Loan processing activities; notice filing required 23-2.5-7-3Loan processor or underwriter activities; representation to public 23-2.5-7-4Responsibilities of manager 23-2.5-7-5Manager; supervising activities limitation 23-2.5-7-6Annual loan broker office compliance examinations 23-2.5-7-7Branch office manager 23-2.5-7-8Loan broker employees; steps to prevent violation 23-2.5-7-9Manager; steps to prevent violation 23-2.5-7-10Branch manager; steps to prevent violation 23-2.5-7-11Loan broker review of loan processing company work

IC 23-2.5-7-1Loan broker employment of manager or mortgage loan originator; license required Sec. 1. A loan broker shall not employ an individual to act as a manager or mortgage loan originator unless the individual is licensed under this article as a mortgage loan originator.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.20.

IC 23-2.5-7-2Loan processing activities; notice filing required Sec. 2. A loan broker shall not engage the services of a person to perform loan processing activities unless the person has complied with the loan processing company notice filing requirements of IC 23-2.5-5.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-7-3Loan processor or underwriter activities; representation to public Sec. 3. An individual who acts solely as a loan processor or an underwriter shall not represent to the public through:

(1) advertising; or

(2) other means of communicating or providing information, including business cards, stationery, brochures, signs, rate lists, or other promotional items;

that the individual will perform mortgage loan origination activities or otherwise act as a mortgage loan originator.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-7-4Responsibilities of manager Sec. 4. A loan broker shall, in accordance with section 5 of this chapter, employ and designate a manager who is responsible for supervising the:

(1) mortgage loan originators employed by the loan broker; and

(2) loan broker offices operated by the loan broker;

to ensure compliance with this article.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.21.

IC 23-2.5-7-5Manager; supervising activities limitation Sec. 5. (a) A manager designated by a loan broker under section 4 of this chapter may supervise not more than five (5) loan broker offices operated by the loan broker, including the principal place of business and any branch offices of the same company.

(b) A loan broker shall employ a sufficient number of additional managers designated as supervisors to accommodate any branch offices:

(1) operated by the loan broker; and

(2) in excess of the number permitted under subsection (a).

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.22.

IC 23-2.5-7-6Annual loan broker office compliance examinations Sec. 6. (a) A manager shall complete at least one (1) compliance examination per year of each loan broker office for which the manager is the supervisor designated under section 4 of this chapter.

(b) A loan broker shall maintain complete documentation of each examination conducted by a manager under subsection (a):

(1) at the principal place of business; and

(2) for a minimum of five (5) years after the calendar year in which the examination is completed.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.23.

IC 23-2.5-7-7Branch office manager Sec. 7. (a) A loan broker that operates a branch office shall designate a unique individual to act as branch manager of the branch office.

(b) A branch manager designated under subsection (a) shall be licensed under this article as a mortgage loan originator.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.24.

IC 23-2.5-7-8Loan broker employees; steps to prevent violation Sec. 8. A loan broker that fails to take reasonable steps to prevent a violation of this article by a mortgage loan originator or other individual employed by the loan broker may subject the loan broker to discipline under IC 23-2.5-11.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.25.

IC 23-2.5-7-9Manager; steps to prevent violation Sec. 9. A manager who fails to take reasonable steps to prevent a violation of this article:

(1) by a mortgage loan originator who is supervised by the manager; or

(2) that occurs at a branch office that is supervised by the manager;

may subject the manager to discipline under IC 23-2.5-11.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.26.

IC 23-2.5-7-10Branch manager; steps to prevent violation Sec. 10. A branch manager who fails to take reasonable steps to prevent a violation of this article by an individual who works at the branch manager's designated branch office may subject the branch manager to discipline under IC 23-2.5-11.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-7-11Loan broker review of loan processing company work Sec. 11. (a) A loan broker shall diligently review work performed on the loan broker's behalf by a loan processing company.

(b) A loan broker that fails to take reasonable steps to review work performed by a loan processing company on the loan broker's behalf may subject the loan broker to discipline under IC 23-2.5-11.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-8Chapter 8. Conduct of Business

23-2.5-8-1Loan broker contract 23-2.5-8-2Real estate appraiser; influence; ownership or interest 23-2.5-8-3Contract rescission; consideration 23-2.5-8-4Loan broker agreement account number 23-2.5-8-5Loan broker records 23-2.5-8-6Loan broker record maintenance 23-2.5-8-7Loan broker ceasing to do business; records; notice to commissioner 23-2.5-8-8Security breach of loan broker record 23-2.5-8-9Licensee disposal of records 23-2.5-8-10Prospective borrower funds; requirements 23-2.5-8-11Loan broker reports of condition

IC 23-2.5-8-1Loan broker contract Sec. 1. (a) A contract for the services of a loan broker is not enforceable unless the contract is in writing and signed by each of the contracting parties.

(b) At the time a contract for the services of a loan broker is signed, the loan broker shall provide the following to each party to the contract:

(1) A copy of the signed contract.

(2) A written disclosure of any agreement entered into by the loan broker to procure loans exclusively from one (1) lender.

"No statement or representation by a loan broker is valid or enforceable unless the statement or representation is in writing.".

(d) This section does not apply to a contract that provides for the payment of referral fees by a lender or a third party.

As added by P.L.175-2019, SEC.2. Amended by P.L.158-2022, SEC.4.

IC 23-2.5-8-2Real estate appraiser; influence; ownership or interest Sec. 2. (a) A licensee or a person required to be licensed under this article shall not knowingly bribe, coerce, or intimidate another person to corrupt or improperly influence the independent judgment of a real estate appraiser with respect to the value of real estate offered as security for a residential mortgage loan.

(b) Except as provided in subsection (c):

(1) a licensee;

(2) a person required to be licensed under this article; or

(3) a member of the immediate family of a licensee;

may not own or control a majority interest in an appraisal company.

(c) This subsection applies to a person or combination of persons described in subsection (b) who own or control a majority interest in an appraisal company on June 30, 2007. The prohibition set forth in subsection (b) does not apply to a person or combination of persons described in this subsection, subject to the following:

(1) The interest in the appraisal company owned or controlled by the person or combination of persons shall not be increased after June 30, 2007.

(2) The interest of a licensee shall not be transferred to a member of the licensee's immediate family.

(3) If the commissioner determines that any person or combination of persons described in subsection (b) has violated this chapter, the commissioner may order one (1) or more of the persons to divest their interest in the appraisal company. The commissioner may exercise the remedy provided by this subdivision in addition to, or as a substitute for, any other remedy available to the commissioner under this article.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-8-3Contract rescission; consideration Sec. 3. (a) If a transaction for which a loan broker has charged a fee is rescinded by a person under the federal Truth in Lending Act (15 U.S.C. 1601-1667e) within twenty (20) calendar days after the date on which a notice of the rescission is delivered to the creditor, the loan broker shall return to the person any consideration received by the loan broker other than bona fide third party fees.

(b) For purposes of calculating the period during which a person may avoid a contract under IC 24-5-10-8 or IC 37-2-3-28, a contract with a loan broker is considered to be a sale of services that occurs on the date on which the person signs the written contract required by section 1 of this chapter.

As added by P.L.175-2019, SEC.2. Amended by P.L.115-2026, SEC.20.

IC 23-2.5-8-4Loan broker agreement account number Sec. 4. A loan broker agreement must be assigned an account number.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-8-5Loan broker records Sec. 5. A loan broker shall maintain the following records, or the electronic equivalent of the following:

(1) A file for each borrower or prospective borrower that contains the following:

(A) The name and address of the borrower or prospective borrower.

(B) A copy of the signed loan broker agreement.

(C) A copy of any other paper or instrument used in connection with the loan broker agreement and signed by the borrower or prospective borrower.

(D) If a loan was obtained for the borrower, the name and address of the creditor.

(E) If a loan is accepted by the borrower, a copy of the loan agreement.

(F) The amount of the loan broker's fee paid by the borrower. If there is an unpaid balance, the status of any collection effort.

(2) All:

(A) receipts from or for the account of borrowers or prospective borrowers; and

(B) disbursements to or for the account of borrowers or prospective borrowers;

recorded so that the transactions are readily identifiable.

(3) A:

(A) general ledger, posted at least monthly; and

(B) trial balance sheet and profit and loss statement, prepared within thirty (30) days of the date on which the commissioner requests the information.

(4) A sample of:

(A) all advertisements, pamphlets, circulars, letters, articles, Internet publications, or communications published:

(i) in a newspaper, magazine, or periodical; or

(ii) by other means of distribution;

(B) scripts of any recording, radio, or video announcement;

(D) any Internet communication distributed to at least ten (10) persons;

used in the solicitation of borrowers.

(5) A report that:

(A) lists all residential mortgage loans originated by the loan broker, including pending loans and loans that were not closed;

(B) is searchable by, or organized according to, the borrower's or prospective borrower's last name; and

(i) The name and address of the borrower or prospective borrower.

(ii) The name of the creditor.

(iii) The name of the mortgage loan originator.

(iv) The loan amount.

(v) The status of the loan, including the date of closing or denial by the creditor.

(vi) The interest rate for the loan.

The report required by this subdivision may be prepared or produced by or through the loan broker's loan origination software or other software used by the loan broker.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-8-6Loan broker record maintenance Sec. 6. (a) The records maintained under section 5 of this chapter must be:

(1) maintained for two (2) years in the office of the loan broker in which the loan was originated; and

(2) separate or readily identifiable from the records of any other business that is conducted in the office of the loan broker.

(b) If the office in which records must be maintained under this section is located outside Indiana, the records must be:

(1) made available to the securities division at a location that is:

(A) located in Indiana; and

(B) accessible to the securities division; or

(2) maintained electronically and made available to the securities division not later than ten (10) business days after a request by the securities division to inspect or examine the records.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-8-7Loan broker ceasing to do business; records; notice to commissioner Sec. 7. (a) A loan broker that ceases to conduct business as a loan broker or allows the loan broker license to lapse shall, before ceasing to conduct business as a loan broker, arrange for the preservation of the records specified in section 5 of this chapter for the remainder of the period specified in section 6(a)(1) of this chapter during which the loan broker ceases to conduct business as a loan broker.

(b) A loan broker described in subsection (a) shall notify the commissioner of the exact address of the physical location where the books and records will be maintained during the period described in subsection (a).

As added by P.L.175-2019, SEC.2.

IC 23-2.5-8-8Security breach of loan broker record Sec. 8. If a breach of the security of a record:

(1) maintained by a loan broker under this chapter; and

(2) containing the unencrypted, unredacted personal information of a borrower or prospective borrower;

occurs, the loan broker is subject to the disclosure requirements of IC 24-4.9-3, unless the loan broker is exempt from the disclosure requirements under IC 24-4.9-3-4.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-8-9Licensee disposal of records Sec. 9. A licensee may not dispose of the unencrypted, unredacted personal information of a borrower or prospective borrower without first shredding, incinerating, mutilating, erasing, or otherwise rendering the information illegible or unusable.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-8-10Prospective borrower funds; requirements Sec. 10. If a licensee or a person required to be licensed under this article possesses funds that belong to another person, including money received by or on behalf of a prospective borrower, the licensee or person required to be licensed shall:

(1) upon request of the prospective borrower, account for the funds possessed for the prospective borrower;

(2) follow reasonable and lawful instructions from the prospective borrower concerning the prospective borrower's funds; and

(3) return the prospective borrower's unspent funds to the prospective borrower in a timely manner.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-8-11Loan broker reports of condition Sec. 11. (a) A loan broker shall, when required by the commissioner, submit reports of condition to the:

(1) commissioner; and

(2) Nationwide Multistate Licensing System.

(b) A report required by this section must be in the form and contain the information required by the commissioner.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-9Chapter 9. Residential Mortgage Loan Transaction Documents

23-2.5-9-1Loan broker agreement; licensee information 23-2.5-9-2Loan processing company records 23-2.5-9-3Loan processing company breach; disclosure 23-2.5-9-4Loan processing company records disposal 23-2.5-9-5Loan processing company records; commissioner examination 23-2.5-9-6Loan processor; federal law compliance 23-2.5-9-7Loan processor; loan processor company; violations

IC 23-2.5-9-1Loan broker agreement; licensee information Sec. 1. A loan broker agreement that is delivered or required to be delivered by a licensee to a borrower or prospective borrower must contain the license number of:

(1) the loan broker; and

(2) each mortgage loan originator;

who had contact with the file.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.27.

IC 23-2.5-9-2Loan processing company records Sec. 2. (a) A loan processing company shall maintain records of all residential mortgage loan transactions conducted by the loan processing company as follows:

(1) The records required to be maintained under this section are the records pertaining to the part of each transaction the loan processing company conducts.

(2) The records must be maintained for at least two (2) years in the office of the loan processing company.

(3) The records must be readily identifiable or separate from the records of any other business conducted by the loan processing company.

(b) If the office in which records are maintained under this section is not located in Indiana, the records must be:

(1) made available to the securities division at a location that is:

(A) located in Indiana; and

(B) accessible to the securities division; or

(2) maintained electronically and made available to the securities division not later than ten (10) business days after a request by the securities division to inspect or examine the records.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-9-3Loan processing company breach; disclosure Sec. 3. If a breach occurs of the security of records that:

(1) are maintained by a loan processing company under this chapter; and

(2) contain the unencrypted, unredacted personal information of one (1) or more borrowers or prospective borrowers;

the loan processing company is subject to the disclosure requirements under IC 24-4.9-3. However, this section does not apply if the loan processor is exempt from the disclosure requirements under IC 24-4.9-3-4.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-9-4Loan processing company records disposal Sec. 4. A loan processing company may not dispose of the unencrypted, unredacted personal information of one (1) or more borrowers or prospective borrowers without first shredding, incinerating, mutilating, erasing, or otherwise rendering the information illegible or unusable.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-9-5Loan processing company records; commissioner examination Sec. 5. The commissioner may examine the books and records of a loan processing company as often as the commissioner considers necessary to verify that the loan processing company is compliant with this article.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-9-6Loan processor; federal law compliance Sec. 6. A loan processor shall comply with all of the following:

(1) The federal Truth in Lending Act (15 U.S.C. 1601 et seq.).

(2) The federal Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.).

(3) The federal Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.).

(4) Any other federal law concerning residential mortgage lending.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-9-7Loan processor; loan processor company; violations Sec. 7. The following are subject to disciplinary proceedings under IC 23-2.5-11 for a violation of this article:

(1) A loan processor.

(2) A loan processing company.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-10Chapter 10. Prohibited Acts

23-2.5-10-1Violations in connection with loan broker agreement

IC 23-2.5-10-1Violations in connection with loan broker agreement Sec. 1. (a) A person shall not, in connection with a contract for the services of a loan broker, do any of the following:

(1) Employ a device, a scheme, or an artifice to defraud.

(2) Make any untrue statements of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of circumstances under which they are made, not misleading.

(3) Engage in an act, a practice, or a course of business that operates or would operate as a fraud or deceit on a person.

(4) Collect or solicit consideration, except a bona fide third party fee, in connection with a residential mortgage loan before the loan is closed.

(5) Receive funds that the person knows were generated as a result of a fraudulent act.

(6) File or cause to be filed with a county recorder a document that the person knows:

(A) contains:

(i) a misstatement; or

(ii) an untrue statement;

of material fact; or

(B) omits a statement of a material fact that is necessary to make the statements that are made, in the light of circumstances under which they are made, not misleading.

(7) Knowingly release or disclose the unencrypted, unredacted personal information of a borrower or prospective borrower, unless the personal information is used in an activity authorized by the borrower or prospective borrower under any of the following circumstances:

(A) The personal information is:

(i) included on an application form or another form; or

(ii) transmitted as part of an application or enrollment process.

(B) The personal information is used to obtain a consumer report (as defined in IC 24-5-24-2) for an applicant for credit.

(i) establish, amend, or terminate an account, a contract, or a policy; or

(ii) confirm the accuracy of the personal information.

However, personal information allowed to be disclosed under this clause may not be printed in whole or in part on a postcard or other mailer that does not require an envelope, or in a manner that makes the personal information visible on an envelope or a mailer without the envelope or mailer being opened.

(8) Engage in reckless or negligent activity allowing the release or disclosure of the unencrypted, unredacted personal information of a borrower or prospective borrower, including an action prohibited by IC 23-2.5-8-9.

(9) Knowingly bribe, coerce, or intimidate another person to corrupt or improperly influence the independent judgment of a real estate appraiser with respect to the value of real estate offered as security for a residential mortgage loan, as prohibited by IC 23-2.5-8-2.

(10) Violate any of the following:

(A) The federal Truth in Lending Act (15 U.S.C. 1601 et seq.).

(B) The federal Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.).

(D) Another federal law or regulation concerning residential mortgage lending.

(11) Omit a material fact or fail to promptly correct a misstatement of material fact in an application made to the commissioner under this article.

(b) A person who commits an act described in subsection (a) is subject to disciplinary proceedings under IC 23-2.5-11.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11Chapter 11. Violations and Civil Enforcement

23-2.5-11-1Permissive actions; denial of licensure application or renewal; suspension; revocation 23-2.5-11-2Required actions; denial of licensure application or renewal; suspension; revocation 23-2.5-11-3Investigation; orders; penalties 23-2.5-11-4Censure; permanent bar 23-2.5-11-5Notice before final order 23-2.5-11-6Implementation; rules; commissioner actions 23-2.5-11-7Immunity of witness 23-2.5-11-8Certificate of compliance or noncompliance 23-2.5-11-9Court to compel obedience to subpoena, order, or demand 23-2.5-11-10Action to enforce penalty 23-2.5-11-11Action to enjoin; other relief 23-2.5-11-12Appeal; procedure 23-2.5-11-13Admissibility of copied statements, documents, and records 23-2.5-11-14Court compelled obedience to subpoena, order, or demand 23-2.5-11-15Contempt of court; liability for damages; contract void 23-2.5-11-16Securities division and department of financial institutions; cooperation 23-2.5-11-17Violations; felonies

IC 23-2.5-11-1Permissive actions; denial of licensure application or renewal; suspension; revocation Sec. 1. The commissioner may deny an application for an initial or a renewal license under this article, and may suspend or revoke the license of a licensee, if the applicant, the licensee, or an ultimate equitable owner of a loan broker or an applicant for a loan broker license:

(1) has, within the most recent ten (10) years:

(A) been the subject of an adjudication or a determination by:

(i) a court with jurisdiction; or

(ii) an agency or administrator that regulates securities, commodities, banking, financial services, insurance, real estate, or the real estate appraisal industry;

in Indiana or any other jurisdiction; and

(B) been found, after notice and opportunity for hearing, to have violated the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal laws of the state or any other jurisdiction;

(2) except as provided in section 2(1) of this chapter with respect to the activities of a loan broker, has:

(A) been denied the right to do business in the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal industry; or

(B) had the person's authority to do business in the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal industry revoked or suspended;

by the state or another state, federal, or foreign governmental agency or self-regulatory organization;

(3) is insolvent;

(4) has violated this article;

(5) has knowingly filed with the commissioner a document or statement that:

(A) contains a false representation of a material fact;

(B) fails to state a material fact; or

(i) after the filing; and

(ii) during the term of the license;

and does not notify the commissioner as required by IC 23-2.5-4-8;

(6) has been convicted, during the ten (10) years preceding the date of the application, renewal, or review, of a crime, other than a felony, involving fraud or deceit;

(7) if the person is a loan broker, has failed to reasonably supervise the person's mortgage loan originators, loan processors or underwriters, or employees to ensure compliance with this article;

(8) is on the most recent tax warrant list supplied to the commissioner by the department of state revenue;

(9) has engaged in dishonest or unethical practices, as determined by the commissioner; or

(10) has, after receiving a request from the securities division for additional documentation or information in connection with an application for an initial or renewal license, failed to properly respond to the request within thirty (30) days after the date on which the person receives the request.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.28.

IC 23-2.5-11-2Required actions; denial of licensure application or renewal; suspension; revocation Sec. 2. The commissioner shall deny an application for an initial or a renewal license under this article, and shall revoke the license of a licensee, if the applicant, the licensee, or an ultimate equitable owner of a loan broker or an applicant for a loan broker license:

(1) has had a:

(A) loan broker license issued under this article;

(B) mortgage loan originator license issued under this article; or

(i) equivalent to a license described in clause (A) or (B); and

(ii) issued by another jurisdiction;

revoked by the commissioner or the appropriate regulatory agency in another jurisdiction, whichever applies;

(2) has been convicted of or pleaded guilty or nolo contendere to a felony in a domestic, foreign, or military court:

(A) during the seven (7) year period immediately preceding the date of the application or renewal; or

(B) at a time preceding the date of the application or renewal if the felony involved an act of fraud or dishonesty, a breach of trust, or money laundering;

(3) fails to maintain the bond required by IC 23-2.5-4-12;

(4) fails to demonstrate the financial responsibility, character, and general fitness necessary to:

(A) command the confidence of the community in which the applicant or licensee engages or will engage in the activities of a loan broker; and

(B) warrant a determination by the commissioner that the applicant or licensee will operate honestly, fairly, and efficiently according to the requirements of this article;

(5) has failed to meet the education requirements set forth in IC 23-2.5-6;

(6) has failed to pass the written examination required by IC 23-2.5-6; or

(7) fails to:

(A) keep or maintain records in accordance with IC 23-2.5-8; or

(B) allow the commissioner or an agent appointed by the commissioner to inspect or examine a loan broker's books and records to determine compliance with IC 23-2.5-8.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.29.

IC 23-2.5-11-3Investigation; orders; penalties Sec. 3. (a) If the commissioner determines that a person has engaged in or is about to engage in an act or a practice that violates this article or a rule or an order under this article, the commissioner may investigate and issue:

(1) with a prior hearing if there exists no substantial threat of immediate irreparable harm; or

(2) without a prior hearing if there exists a substantial threat of immediate irreparable harm;

orders and notices determined by the commissioner to be in the public interest, including cease and desist orders, orders to show cause, and notices.

(b) After notice and hearing, the commissioner may enter an order of rescission, restitution, or disgorgement, including interest at the rate of eight percent (8%) per year, directed to a person who the commissioner determines has violated this article or a rule or an order under this article.

(c) If the commissioner determines, after a hearing, that a person has violated this article or a rule or an order under this article, the commissioner may, in addition to other remedies, impose a civil penalty on the person in an amount not to exceed ten thousand dollars ($10,000) for each violation.

(d) Upon the commissioner's issuance under subsection (a) of an order or notice without a prior hearing, the commissioner shall promptly notify:

(1) the respondent; and

(2) if the subject of the order or notice is a mortgage loan originator or a manager, the loan broker for whom the mortgage loan originator or manager is employed;

of the issuance of the order or notice.

(e) The notification required by subsection (d) must include the following:

(1) Notice that the order or notice has been issued.

(2) Notice of the reasons the order or notice has been issued.

(3) Notice that upon the commissioner's receipt of a written request from the person against which the order or notice is issued, the matter will be set for a hearing to commence not later than:

(A) fifteen (15) business days after the commissioner's receipt of the request if the original order or notice issued by the commissioner was a summary suspension, summary revocation, or denial of a license; and

(B) forty-five (45) business days after the commissioner's receipt of the request for any other order or notice, unless the respondent consents to a later date.

(f) If a hearing:

(1) is not requested under subsection (e); and

(2) is not ordered by the commissioner;

an order or notice issued under this section remains in effect until the order or notice is modified or vacated by the commissioner.

(g) If a hearing is requested under subsection (e) or ordered by the commissioner, the commissioner, after notice of an opportunity for hearing, may modify or vacate the order or notice or extend the order or notice until final determination.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.30.

IC 23-2.5-11-4Censure; permanent bar Sec. 4. The commissioner may do either of the following:

(1) Censure:

(A) a licensee;

(B) an officer, a director, an ultimate equitable owner, or an equitable owner of a loan broker; or

who violates or causes a violation of this article.

(2) Permanently bar a person described in subdivision (1) from being:

(A) licensed under this article; or

(B) employed by, or affiliated with, a person that is licensed under this article;

if the person violates or causes a violation of this article.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11-5Notice before final order Sec. 5. (a) Except as provided in subsection (b), the commissioner may not enter a final order:

(1) denying, suspending, or revoking the license of an applicant or a licensee; or

(2) imposing another sanction;

without prior notice to all interested parties, opportunity for a hearing, and written findings of fact and conclusions of law.

(b) The commissioner may, by summary order, deny, suspend, or revoke a license:

(1) pending final determination of a proceeding under this chapter; or

(2) before a proceeding is initiated under this chapter.

(c) Upon the entry of a summary order under subsection (b), the commissioner shall promptly notify all interested parties:

(1) that the summary order has been entered;

(2) of the reasons for the summary order; and

(3) that, upon receipt by the commissioner of a written request from a party, the matter will be set for hearing to commence not later than forty-five (45) business days after the commissioner's receipt of the request.

(d) If a hearing:

(1) is not requested under subsection (c); and

(2) is not ordered by the commissioner;

the summary order remains in effect until the summary order is modified or vacated by the commissioner.

(e) If a hearing is requested under subsection (c) or ordered by the commissioner, the commissioner may:

(1) after notice of the hearing has been given to all interested persons; and

(2) the hearing has been held;

modify or vacate the summary order or extend the summary order until final determination is made.

As added by P.L.175-2019, SEC.2. Amended by P.L.211-2019, SEC.31.

IC 23-2.5-11-6Implementation; rules; commissioner actions Sec. 6. (a) The commissioner may do the following:

(1) Issue forms and orders to implement this article.

(2) Adopt rules under IC 4-22-2 to implement this article.

(3) Repeal rules, including rules and forms governing applications, notice filings, reports, and other records.

(4) Define terms consistent with this article, whether or not used in this article.

(5) Conduct investigations and examinations:

(A) in connection with an application for licensure, or a license issued, under this article;

(B) whenever it appears to the commissioner, upon the basis of a complaint or information, that reasonable grounds exist for the belief that an investigation or examination is necessary or advisable for the more complete protection of the interests of the public; and

(C) including investigations and examinations of a loan broker office, principal place of business, branch office, location listed in a mortgage loan originator's application under IC 23-2.5-4-3, appraisal company, or loan processing company.

(6) Charge, as costs of investigation or examination, reasonable expenses including:

(A) a per diem prorated on the salary of the:

(i) commissioner; or

(ii) employee performing the investigation or examination; and

(B) actual travel and hotel expenses;

to be paid by the person that is under investigation or examination and that is determined to have violated this article.

(7) After conducting an investigation or examination, issue notices and orders, including cease and desist notices and orders. A notice or order issued under this subdivision must include the following:

(A) Notice that the notice or order is issued.

(B) Notice that if the commissioner receives from the person a written request for a hearing concerning the notice or order, a hearing will be set not later than:

(i) fifteen (15) business days after the commissioner receives the request if the original order issued by the commissioner was a summary suspension, summary revocation, or denial of a license; and

(ii) forty-five (45) business days after the commissioner receives the request for an order not described in item (i).

(8) Sign, or delegate to a deputy commissioner the authority to sign orders, official certifications, documents, or papers issued under this article.

(9) Hold and conduct hearings.

(10) Hear evidence.

(11) Conduct inquiries, with or without hearings.

(12) Receive reports of investigators or other officers or employees of the state or a municipal corporation or governmental subdivision in Indiana.

(13) Administer, or cause to be administered, oaths.

(14) Subpoena witnesses and compel witnesses to attend and testify.

(15) Compel the production of books, records, and other documents.

(16) Order depositions to be:

(A) taken of witnesses that reside in Indiana or elsewhere;

(B) taken in the manner prescribed by law for depositions in civil actions; and

(17) Order the same fees and mileage allowances provided for witnesses in civil cases to be paid to each witness who appears under the commissioner's order to testify before the commissioner.

(18) Provide interpretive opinions or issue determinations that the commissioner will not institute a proceeding or an action under this article against a specified person for engaging in a specified act, practice, or course of business if:

(A) the request for the interpretive opinion or determination is made after the date on which the specified act, practice, or course of business occurs; and

(B) the interpretive opinion or determination is consistent with this article.

(19) Adopt rules to establish fees for individuals requesting an interpretive opinion or a determination under subdivision (18).

(20) Subject to subsection (b):

(A) designate a multistate automated licensing system and repository (including the Nationwide Multistate Licensing System), established and operated by a third party, to serve as the sole entity responsible for:

(i) processing applications for license issuance and renewal under this article; and

(ii) performing other services that the commissioner determines are necessary for the orderly administration of the securities division's licensing system; and

(B) take action necessary to allow the securities division to participate in a multistate automated licensing system and repository described in clause (A).

(b) The commissioner's authority to designate a multistate automated licensing system and repository under subsection (a)(20) is subject to the following:

(1) The commissioner may not require:

(A) a person that is not required to be licensed under this article; or

(B) an employee or agent of a person that is not required to be licensed under this article;

to submit information to or participate in the multistate automated licensing system and repository.

(2) The commissioner may require a person that is required under this article to submit information to the multistate automated licensing system and repository to pay a processing fee considered to be reasonable by the commissioner.

(1) Subject to IC 5-14-3, regularly report:

(A) violations of this article; and

(B) enforcement actions and other relevant information;

to the Nationwide Multistate Licensing System.

(2) Establish a process by which a mortgage loan originator may challenge information entered by the commissioner into the Nationwide Multistate Licensing System.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11-7Immunity of witness Sec. 7. (a) If a witness, in a hearing, an inquiry, or an investigation conducted under this article, refuses to answer a question or produce an item, the commissioner may file a written petition with the circuit or superior court in the county where the hearing, investigation, or inquiry is conducted requesting a hearing on the refusal.

(b) The court described in subsection (a) shall hold a hearing to determine if the witness may refuse to answer the question or produce the item.

(c) If the court described in subsection (a) determines that the witness, based upon the witness's privilege against self-incrimination, may properly refuse to answer or produce an item, the commissioner may make a written request that the court grant use immunity to the witness.

(d) Upon written request of the commissioner under subsection (c), the court shall grant use immunity to the witness and instruct the witness, by written order or in open court, that:

(1) any evidence the witness gives, or evidence derived from the evidence given, may not be used in a criminal proceeding against the witness, unless the evidence is volunteered by the witness or is not responsive to a question; and

(2) the witness must answer the questions asked and produce the items requested.

(e) A grant of use immunity under this section does not prohibit evidence that the witness gives in a hearing, investigation, or inquiry from being used in a prosecution for perjury under IC 35-44.1-2-1.

(f) If a witness refuses to give evidence after the witness has been granted use immunity, the court may find the witness in contempt.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11-8Certificate of compliance or noncompliance Sec. 8. (a) In a prosecution, action, suit, or proceeding based on or arising out of this article, the commissioner may sign a certificate showing compliance or noncompliance with this article by any person.

(b) A certificate signed under subsection (a) constitutes prima facie evidence of compliance or noncompliance with this article and is admissible in evidence in an action at law or in equity to enforce this article.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11-9Court to compel obedience to subpoena, order, or demand Sec. 9. (a) This section applies when a person or witness takes an action as follows:

(1) A person disobeys a lawful:

(A) subpoena issued under this article; or

(B) order or demand requiring the production of books, accounts, papers, records, documents, or other evidence or information as provided in this article.

(2) A witness in a hearing, inquiry, or investigation refuses to:

(A) appear when subpoenaed;

(B) testify to a matter about which the witness may be lawfully interrogated; or

(b) If a person or witness takes an action described in subsection (a):

(1) the circuit or superior court of the county in which the hearing, inquiry, or investigation described in subsection (a) is held, if:

(A) demand is made; or

(B) upon written petition, the production is ordered to be made;

(2) the commissioner;

(3) before July 1, 2020, a hearing officer appointed by the commissioner; or

(4) after June 30, 2020, an administrative law judge assigned, after request by the commissioner, by the office of administrative law proceedings established by IC 4-15-10.5-7;

shall compel compliance with the lawful requirements of the subpoena, order, or demand, compel the production of the necessary or required books, papers, records, documents, and other evidence and information, and compel the witness to attend in an Indiana county and to testify to any matter about which the witness may lawfully be interrogated, and to take or subscribe to any oath required.

As added by P.L.175-2019, SEC.2. Amended by P.L.205-2019, SEC.26.

IC 23-2.5-11-10Action to enforce penalty Sec. 10. The commissioner may bring an action in the circuit or superior court of Marion County to enforce payment of a penalty imposed under this article.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11-11Action to enjoin; other relief Sec. 11. (a) If the commissioner believes that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business that:

(1) is; or

(2) materially aids;

a violation of this article or a rule adopted or an order issued under this article, the commissioner may maintain an action in the circuit or superior court in the county where the investigation or inquiry is being conducted to enjoin the act, practice, or course of business and to enforce compliance with this article or a rule adopted or an order issued under this article.

(b) In an action under this section and on a proper showing, the court may:

(1) issue a permanent or temporary injunction, restraining order, or declaratory judgment;

(2) order other appropriate or ancillary relief, including:

(A) an asset freeze, accounting, writ of attachment, writ of general or specific execution, and appointment of a receiver or conservator;

(B) ordering a receiver or conservator appointed under clause (A) to:

(i) take control of a respondent's property, including investment accounts and accounts in a depository institution, rents, and profits;

(ii) collect debts; and

(iii) acquire and dispose of property;

(C) imposing a civil penalty of not more than ten thousand dollars ($10,000) per violation and an order of rescission, restitution, or disgorgement directed to the person that has engaged in an act, practice, or course of business constituting a violation of this article or a rule adopted or an order issued under this article; and

(D) ordering the payment of prejudgment and postjudgment interest; or

(3) order other relief that the court considers appropriate.

(d) Penalties collected under this section must be deposited in the securities division enforcement account established by IC 23-19-6-1(f).

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11-12Appeal; procedure Sec. 12. (a) An appeal may be taken, to the Marion circuit court or the circuit or superior court of the county where the person taking the appeal resides or maintains a place of business, by the following:

(1) A person whose application for issuance or renewal of a license under this article is granted or denied, from any final order of the commissioner concerning the application.

(2) An applicant for issuance or renewal of a license as a mortgage loan originator, from any final order of the commissioner affecting the application.

(3) An applicant for issuance or renewal of a license for a loan broker office from any final order of the commissioner affecting the application.

(4) A person against whom a civil penalty is imposed under section 3(c) of this chapter, from the final order of the commissioner imposing the civil penalty.

(5) A person who is named as a respondent, from any final order of the commissioner under this article.

(b) Not later than twenty (20) days after the entry of the order under subsection (a), the commissioner must be served with:

(1) a written notice of the appeal specifying the court to which the appeal will be taken and the grounds on which a reversal of the final order is sought;

(2) a demand in writing from the appellant for a certified transcript of the record and all papers on file in the commissioner's office that affect or relate to the order; and

(3) a bond in the penal sum of five hundred dollars ($500) to the state with sufficient surety to be approved by the commissioner, conditioned on the faithful prosecution of the appeal to final judgment and the payment of all costs that are adjudged against the appellant.

(c) Not later than ten (10) days after the date on which the commissioner is served with the items listed in subsection (b), the commissioner shall make, certify, and deliver to the appellant the transcript, and the appellant shall, not later than five (5) days after the date on which the appellant receives the transcript, file the transcript and a copy of the notice of appeal with the clerk of the court. The notice of appeal serves as the appellant's complaint. The commissioner may appear and file a motion or pleading and form the issue. The cause must be entered on the trial calendar for trial de novo and given precedence over all matters pending in the court.

(d) The court shall receive and consider any pertinent oral or written evidence concerning the order of the commissioner from which an appeal under this section is taken. If the order of the commissioner is reversed, the court shall in the court's mandate specifically direct the commissioner concerning the commissioner's further action in the matter. The commissioner is not barred from revoking or altering the order for proper cause that accrues or is discovered after the order is entered. If the order is affirmed, the appellant is not barred after thirty (30) days after the date on which the order is affirmed from filing a new application if the application is not otherwise barred or limited. During the pendency of the appeal, the order from which the appeal is taken is not suspended but remains in effect unless otherwise ordered by the court. An appeal may be taken from the judgment of the court on the same terms and conditions as an appeal is taken in civil actions.

As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.31.

IC 23-2.5-11-13Admissibility of copied statements, documents, and records Sec. 13. Copies of a statement or document filed with the commissioner, and copies of any records of the commissioner, certified to by the commissioner or a deputy are admissible in a prosecution, an action, a suit, or a proceeding based on, or arising out of or under, this article to the same extent that the original of the statement, document, or record would be admissible if produced.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11-14Court compelled obedience to subpoena, order, or demand Sec. 14. Upon:

(1) disobedience on the part of any person to a lawful:

(A) subpoena issued under this article; or

(B) order or demand requiring the production of books, accounts, papers, records, documents, or other evidence or information as provided in this article; or

(2) the refusal of a witness to:

(A) appear when subpoenaed to testify to a matter regarding which the witness may be lawfully interrogated; or

(B) take or subscribe to an oath required by this article;

it is the duty of the circuit or superior court of the county where the hearing, inquiry, or investigation in question is held, where demand is made, or where the production is ordered to be made, upon written petition of the commissioner, to compel obedience to the lawful requirements of the subpoena, order, or demand.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11-15Contempt of court; liability for damages; contract void Sec. 15. (a) If a person fails, refuses, or neglects to comply with a court order under this chapter, the person must be held in contempt of court.

(b) A person who violates this article or a rule adopted under this article, in connection with a contract for the activities of a loan broker, is liable to a person damaged by the violation for:

(1) the amount of the actual damages suffered;

(2) interest at the legal rate; and

(3) attorney's fees.

(c) If a person violates this article, or a rule adopted under this article, in connection with a contract for the activities of a loan broker, the contract is void, and the prospective borrower is entitled to receive from the loan broker all sums paid to the loan broker.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-11-16Securities division and department of financial institutions; cooperation Sec. 16. In the securities division's investigative, examination, and regulatory activities related to licensees under this article, the securities division may cooperate with the Indiana department of financial institutions in the regulation of a licensee that conducts:

(1) business under this article; and

(2) business that requires licensure under IC 37-1.

As added by P.L.175-2019, SEC.2. Amended by P.L.115-2026, SEC.21.

IC 23-2.5-11-17Violations; felonies Sec. 17. (a) Except as provided in subsection (b), a person who knowingly violates this article commits a Level 5 felony.

(b) A person who knowingly violates this article commits a Level 4 felony if the person damaged by the violation is at least sixty (60) years of age.

(1) a document filed with or sent to the commissioner or the securities division; or

(2) a proceeding, an investigation, or an examination under this article;

a statement that is, at the time and in the light of the circumstances under which the statement is made, false or misleading in any material respect.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-12Chapter 12. Effect of Repeal of IC 23-2-5

23-2.5-12-1Effect of repeal of former law 23-2.5-12-2Governance of repealed law 23-2.5-12-3Effect of repeal on license in effect 23-2.5-12-4Effect of repeal on certain items in effect

IC 23-2.5-12-1Effect of repeal of former law Sec. 1. The repeal of IC 23-2-5 does not affect any:

(1) rules adopted under IC 23-2-5-11;

(2) action taken under IC 23-2-5; or

(3) right, privilege, obligation, or liability acquired, accrued, or incurred under IC 23-2-5;

as in effect before their repeal.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-12-2Governance of repealed law Sec. 2. IC 23-2-5, as in effect before its repeal, exclusively governs all actions and proceedings that:

(1) are pending on June 30, 2019; or

(2) may be instituted after June 30, 2019, on the basis of conduct occurring before July 1, 2019.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-12-3Effect of repeal on license in effect Sec. 3. Unless a license issued under IC 23-2-5, before its repeal, is suspended or revoked before the date on which the license would have expired under IC 23-2-5, before its repeal, the license is valid until the date on which the license would have expired under IC 23-2-5, before its repeal.

As added by P.L.175-2019, SEC.2.

IC 23-2.5-12-4Effect of repeal on certain items in effect Sec. 4. (a) This section applies to the extent that:

(1) a statement of policy;

(2) an administrative order;

(3) a rule;

(4) an interpretive opinion;

(5) a declaratory ruling;

(6) a no-action determination;

(7) a condition; or

(8) another action of the commissioner under IC 23-2-5, before its repeal;

does not conflict with IC 23-2.5-1 through IC 23-2.5-11.

(b) An item described in subsection (a) that:

(1) under IC 23-2-5, before its repeal; and

(2) before July 1, 2019;

is placed on or affects a license issued under IC 23-2-5, before its repeal, remains in effect until the date on which the item described in subsection (a) is amended, revoked, or vacated by the commissioner.

As added by P.L.175-2019, SEC.2.

IC 23-3ARTICLE 3. REPEALEDRepealed by P.L.149-1986, SEC.65.

IC 23-4ARTICLE 4. PARTNERSHIPS

Ch. 1.Uniform Partnership Act Ch. 2.Repealed Ch. 3.Accounting by Surviving Partners

IC 23-4-1Chapter 1. Uniform Partnership Act

23-4-1-1Short title 23-4-1-2Definitions 23-4-1-3Interpretation of knowledge and notice 23-4-1-4Rules of construction 23-4-1-5Rules for cases not provided for in chapter 23-4-1-6Partnership defined 23-4-1-7Rules for determining existence of partnership 23-4-1-8Partnership property 23-4-1-9Partner as agent 23-4-1-10Conveyance of real property of partnership 23-4-1-11Partnership bound by admission of partner 23-4-1-12Partnership charged with knowledge of or notice to partner 23-4-1-13Partnership bound by partner's wrongful act 23-4-1-14Partnership bound by partner's breach of trust 23-4-1-15Nature of partner liability; partnerships; limited liability partnerships 23-4-1-16Partner by estoppel 23-4-1-17Liability of incoming partner 23-4-1-18Rules determining rights and duties of partners 23-4-1-19Partnership books 23-4-1-20Duty of partners to render information 23-4-1-21Partner accountable as fiduciary 23-4-1-22Right to account 23-4-1-23Continuation of partnership beyond fixed term 23-4-1-24Extent of property rights of partner 23-4-1-25Nature of partner's right in specific partnership property 23-4-1-26Nature of partner's interest in partnership 23-4-1-27Assignment of partner's interest 23-4-1-28Partner's interest subject to charging order 23-4-1-29Dissolution defined 23-4-1-30Partnership not terminated by dissolution 23-4-1-31Causes of dissolution 23-4-1-32Dissolution by decree of court 23-4-1-33General effect of dissolution on authority of partner 23-4-1-34Right of partner to contribution from copartners after dissolution 23-4-1-35Power of partner to bind partnership to third person after dissolution 23-4-1-36Effect of dissolution on partner's existing liability 23-4-1-37Right to wind up 23-4-1-38Rights of partners to application of partnership property 23-4-1-39Rights where partnership is dissolved for fraud or misrepresentation 23-4-1-40Rules for distribution 23-4-1-41Liability of persons continuing business in certain cases 23-4-1-42Rights of retiring or estate of deceased partner when business is continued 23-4-1-43Accrual of actions 23-4-1-44Limited liability partnerships; legislative intent and policy 23-4-1-45Limited liability partnerships; registration; notice 23-4-1-45.1Limited liability partnerships; amendment of registration 23-4-1-45.2Limited liability partnerships; withdrawal of registration; filing fee 23-4-1-45.3Repealed 23-4-1-45.4Repealed 23-4-1-45.5Repealed 23-4-1-45.6Repealed 23-4-1-45.7Repealed 23-4-1-46Limited liability partnerships; continuation of partnership and successor partnership registration 23-4-1-47Repealed 23-4-1-48Repealed 23-4-1-49Repealed 23-4-1-50Repealed 23-4-1-51Repealed 23-4-1-52Repealed 23-4-1-53Repealed 23-4-1-54Repealed 23-4-1-59Repealed

Source: official Indiana text · Last verified 2026-08-27

Frequently Asked Questions About Indiana § 23-2-6-43

What does Indiana Code § 23-2-6-43 cover?

Section 23-2-6-43 ("Failure to make physical delivery; defenses") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

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Indiana § 23-2-6-43 - Failure to make physical delivery; defenses

§ 23-2-6-43. Failure to make physical delivery; defenses

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Frequently Asked Questions About Indiana § 23-2-6-43

What does Indiana Code § 23-2-6-43 cover?

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Is this the official text of Indiana law?

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