§ 24-4.5-6-119 — Violations by individuals; persons convicted of felonies; civil penalties; creditor's duty to notify department of discharge or termination

Indiana § 24-4.5-6-119

• Jurisdiction: Indiana
• Art. 4.5: UNIFORM CONSUMER CREDIT CODE
• Ch. 6: Administration

Text

(a) Subject to subsection (b), if the
director determines that a director, an officer, or a manager of a
creditor:
(1) has committed a violation of a statute, a rule, a final cease and
desist order, a condition imposed in writing by the director in
connection with the grant of an application or other request by the
creditor, or a written agreement between the creditor and the
director or the department;
(2) has committed fraudulent or unconscionable conduct; or
(3) has been convicted of a felony under the laws of Indiana or
any other jurisdiction;
the director may issue and serve upon the person a notice of charges
and of the director's intent to issue an order removing the person from
the person's office or employment, an order prohibiting participation by
the person in the conduct of the affairs of any creditor, or an order both
removing the person and prohibiting the person's participation.
(b) A violation, practice, or breach described in subsection (a) is
subject to the authority of the director under subsections (a) and (c) if
the director finds any of the following:
(1) The interests of the creditor's customers could be seriously
prejudiced by reason of the violation, practice, or breach.
(2) The violation, practice, or breach involves an act of fraud,
dishonesty, theft, breach of trust, money laundering, or wrongful
taking of property on the part of the officer, director, or manager
involved.
(3) The violation, practice, or breach demonstrates a willful or
continuing disregard by the officer, director, or manager for state
or federal law and regulations, and for the consumer protections
contained in this article.
(c) Subject to subsections (a) and (b), a person who has been
convicted of a felony under the laws of Indiana or any other jurisdiction
may not serve as an officer, a director, or a manager of a creditor, or
serve in any similar capacity, unless the person obtains the written
consent of the director.
(d) A creditor that willfully permits a person to serve the creditor in
violation of subsection (c) is subject to a civil penalty of five hundred
dollars ($500) for each day the violation occurs.
(e) A creditor shall give the department written notice of the
resignation, discharge, or termination of an employee, independent
contractor, or agent against whom allegations were made that accused
the employee, independent contractor, or agent of:
(1) violating this article or other laws, regulations, rules, or
industry standards of conduct applicable to consumer credit
transactions; or
(2) fraud, dishonesty, theft, breach of trust, money laundering, or
the wrongful taking of property.
The creditor shall provide the department the notice required under this
subsection not later than thirty (30) days after the effective date of the
resignation, discharge, or termination.

Legislative History

As added by P.L.35-2010, SEC.73. Amended by P.L.27-2012, SEC.27; P.L.176-2019, SEC.23.