§ 24-4.4-2-404.2 — Director's notice of intent to issue order; contents; hearing; final order; suspension or prohibition pending final order; official record

Indiana § 24-4.4-2-404.2

• Jurisdiction: Indiana
• Art. 4.4: FIRST LIEN MORTGAGE LENDING
• Ch. 2: Miscellaneous

Text

2. (1) A notice issued under this chapter
must:
(a) be in writing;
(b) contain a statement of the facts constituting the alleged
practice, violation, or breach;
(c) state the facts alleged in support of the violation, practice, or
breach;
(d) state the director's intention to enter an order under section
404.4(1) of this chapter;
(e) be delivered to the board of directors of the creditor;
(f) be delivered to the officer, director, or manager concerned;
(g) specify the procedures that must be followed to initiate a
hearing to contest the facts alleged; and
(h) if the director suspends or prohibits an officer, a director, or
a manager of the creditor from participating in the affairs of the
creditor, as described in subsection (5), include a statement of the
suspension or prohibition.
(2) If a hearing is requested not later than ten (10) days after service
of the written notice, the department shall hold a hearing concerning
the alleged practice, violation, or breach. The hearing shall be held not
later than forty-five (45) days after receipt of the request. The
department, based on the evidence presented at the hearing, shall enter
a final order under section 404.4 of this chapter.
(3) If no hearing is requested within the time specified in subsection
(2), the director may proceed to issue a final order under section 404.4
of this chapter on the basis of the facts set forth in the written notice.
(4) An officer, a director, or a manager who is removed from a
position under a removal order that has become final may not
participate in the conduct of the affairs of any mortgage licensee
without the approval of the director.
(5) The director may, for the protection of the creditor or the
interests of its customers, suspend from office or prohibit from
participation in the affairs of the creditor an officer, a director, or a
manager of a creditor who is the subject of a written notice served by
the director under section 404.1(1) of this chapter. A suspension or
prohibition under this subsection becomes effective upon service of the
notice under section 404.1(1) of this chapter. Unless stayed by a court
in a proceeding authorized by subsection (6), the suspension or
prohibition remains in effect pending completion of the proceedings
related to the notice served under section 404.1(1) of this chapter and
until the effective date of an order entered by the department under
subsection (2) or the director under subsection (3). Copies of the notice
shall also be served upon the creditor or affiliate of which the person
is an officer, a director, or a manager.
(6) Not more than fifteen (15) days after an officer, a director, or a
manager has been suspended from office or prohibited from
participation in the conduct of the affairs of the creditor or affiliate
under subsection (5), the officer, director, or manager may apply to a
court having jurisdiction for a stay of the suspension or prohibition
pending completion of the proceedings related to the written notice
served under section 404.1(1) of this chapter, and the court may stay
the suspension or prohibition.
(7) The department shall maintain an official record of a proceeding
under this chapter.

Legislative History

As added by P.L.35-2010, SEC.20. Amended by P.L.69-2018, SEC.8; P.L.176-2019, SEC.6.