Indiana § 26-3-7-14.2 - Current liability ratio; informal meeting; revocation of license; fines

§ 26-3-7-14.2. Current liability ratio; informal meeting; revocation of license; fines

Sec. 14.2. (a) A licensee under this chapter shall maintain a minimum current ratio of one to one (1:1) or better. The current ratio is determined by dividing a licensee's current assets by the licensee's current liabilities, as demonstrated by the licensee's financial statement submitted to the agency, the quotient of which is rounded to the nearest ten-thousandth (0.0001) decimal place.

(b) For purposes of subsection (a), a better ratio includes the absence of a current ratio where the value of a licensee's current liabilities, as demonstrated by the licensee's financial statement submitted to the agency, is zero (0).

(c) The addition by the licensee of an amount required under this section does not itself constitute or effect a cure of a current ratio deficiency.

(d) If the licensee's demonstrated current ratio is less than the required amount but greater than eighty-five percent (85%) of the required amount, then:

(1) the director or the director's designated representative shall issue a notice of deficiency to the licensee; and

(2) the licensee shall cure the current ratio deficiency within ninety (90) days from the receipt of the deficiency notice.

(e) If the licensee's demonstrated current ratio is less than or equal to eighty-five percent (85%) of the required amount or has not cured the ratio deficiency as required in subsection (d)(2), then the director shall hold an informal meeting in accordance with this chapter and, within thirty (30) days of the conclusion of the informal meeting, issue either:

(1) a consent agreement that requires the licensee to take certain actions within a set period, not to exceed twelve (12) months, to remedy the current ratio deficiency, as the director deems necessary and appropriate; or

(2) an order that revokes the license or licenses of the licensee.

(f) If a licensee, after an informal meeting in subsection (e):

(1) does not meet the requirements in subsection (e)(1), the director shall revoke; or

(2) has an asset to liability ratio that has continued to decline, the director may revoke;

the license or licenses of the licensee.

(g) Subject to section 31.8 of this chapter, the director shall assess a fine of one thousand dollars ($1,000) against a licensee that does not maintain the minimum ratio requirement under subsection (a).

As added by P.L.114-2025, SEC.21.