Indiana § 28-11-4-12 - Enforcement powers exercised against affiliate of financial institution

§ 28-11-4-12. Enforcement powers exercised against affiliate of financial institution

Sec. 12. (a) The director of the department may exercise the enforcement powers of this chapter against an affiliate of a financial institution, or against an officer, a director, or an employee of the affiliate, as if the affiliate were a financial institution if the director determines that a practice of the affiliate, or of the officer, director, or employee, could cause either:

(1) the financial institution to suffer substantial loss or other damage; or

(2) the interests of the financial institution's depositors to be seriously prejudiced by reason of a violation, practice, or breach of fiduciary duty.

(b) In exercising the director's enforcement powers under this chapter against an officer, a director, or an employee of an affiliate, the director may:

(1) remove the officer, director, or employee from the person's office, position, or employment;

(2) prohibit any participation by the officer, director, or employee in the conduct of the affairs of any financial institution; or

(3) take both of the actions set forth in subdivisions (1) and (2).

(c) The director of the department may issue and serve upon the officer, director, or employee of the affiliate a notice of charges of the practice, violation, or act.

(d) For purposes of this section, affiliate has the meaning set forth in IC 28-1-18.2.

As added by P.L.215-1999, SEC.8. Amended by P.L.90-2008, SEC.73.

IC 28-11-5Chapter 5. Department Oversight of Organization of a Financial Institution

28-11-5-1Application of chapter 28-11-5-2Approval of articles of incorporation and organization and establishment of financial institutions 28-11-5-3Applications to establish financial institutions 28-11-5-4Investigation of applicant; disapproval of application; submission of fingerprints 28-11-5-4.5Background checks; fingerprints 28-11-5-5Hearings on applications 28-11-5-6Notice of applications subject to hearings 28-11-5-7Hearing procedures 28-11-5-8Approval or disapproval of applications 28-11-5-9Payment of expenses 28-11-5-10Financial institutions organized as limited liability companies; treatment as financial institution organized in stock form; exclusive authority of department to regulate; prior approval of department required