Indiana § 26-3-7-31.6 - Revocation of license; revocation procedures

§ 26-3-7-31.6. Revocation of license; revocation procedures

Sec. 31.6. (a) The director may revoke a license by issuing a revocation order upon notice.

(b) If a license is revoked under this chapter, the licensee shall do the following:

(1) Immediately cease all activities covered by the revoked license.

(2) Immediately remove all public indications regarding the existence or effectiveness of the revoked license, including the copy of the license physically on display at a facility.

(3) Promptly turn over and deliver to the director or the director's designated representative all books, records, and other property related to or containing information on the activities and any obligations covered by the revoked license.

(4) Comply with any additional terms and conditions determined by the director that the revocation order imposes on the licensee.

(5) Comply with the orders from the director respecting the revoked license, any obligations or activities covered by the revoked license, or the claims administration process.

(c) Notwithstanding anything to the contrary in this chapter, a license shall be revoked automatically if the licensee has done any of, and as of the respective dates or times of, the following:

(1) Has filed a voluntary bankruptcy petition under Chapter 7 of the federal Bankruptcy Code, as of the date the licensee filed the petition.

(2) Has filed:

(A) a voluntary bankruptcy petition under Chapter 11, 12, or 13 of the federal Bankruptcy Code; and

(B) within seven (7) days of the filing of the petition, either:

(i) a liquidating plan not predicated or premised on a prior sale process under Chapter 3 of the federal Bankruptcy Code; or

(ii) an affidavit of an owner, member, director, officer, or executive of the licensee stating that the licensee intends to propose a liquidating plan without first conducting a sale process under Chapter 3 of the federal Bankruptcy Code;

as of the date the licensee filed the liquidating plan or affidavit.

(3) Is the subject of an involuntary bankruptcy petition if the bankruptcy court has entered an order for relief against the licensee, as of the date and time of the order for relief.

(4) Is the subject of a receivership order in any state court, as of the date and time of the receivership order.

(5) Is the assignor in an assignment for the benefit of creditors in any state court, as of the date and time of the filing of pleading initiating the proceeding.

(6) Is declared by any court of competent jurisdiction to be insolvent, as of the date and time of the order so declaring.

(7) Has entered into an agreement obligating the licensee to discontinue and liquidate its business, or the portion of its business covered by the license, without legal or equitable proceedings, as of the effective date of the agreement.

(8) Has stated publicly and in writing that it is in the process of discontinuing its business, or the portion of its business covered by the license, or will be liquidating immediately, as of the date and time the writing is published or made widely available.

As added by P.L.114-2025, SEC.37. Amended by P.L.23-2026, SEC.258.