§ 27-1-7-15 — Loans to or borrowing by directors or officers; offense; exceptions

Indiana § 27-1-7-15

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 7: General Corporate Powers and Responsibilities of

Text

A board of directors, director, or officer of
any insurance company doing business in this state who lends any of
its money or other property, to any director or officer of the insurance
company commits a Class B misdemeanor. A director or officer who
borrows from the insurance company any money or other property
commits a Class B misdemeanor. However, this section does not apply
to:
(1) the continuation to maturity of any loan that did not violate
this section when it was made; or
(2) a loan made by a life insurance company to any director or
officer of the company in an amount not greater than the net cash
surrender value of, and secured by, a policy with the company
held by the borrower; or
(3) a loan made by any insurance company to an officer, other
than a director, secured by a first mortgage loan upon a
single-family dwelling, condominium unit or cooperative
apartment unit, which is the borrower's personal residence
acquired on account of the officer's relocation or initial
employment.
Formerly: Acts 1935, c.162, s.93. As amended by Acts 1978,
P.L.2, SEC.2707; Acts 1981, P.L.235, SEC.1.