(a) Except as provided in subsections (c), (d),
(g), and (o), it is unlawful for any person, firm, limited liability
company, or corporation (other than a bank or trust company, a bank
holding company, a subsidiary of a bank or trust company, a subsidiary
of a bank holding company, a subsidiary of a savings bank, or a
subsidiary of a savings association organized or reorganized under IC 28 or statutes in effect at the time of organization or reorganization or
under the laws of the United States):
(1) to use the word, or a derivation of the word, "bank", "banc",
"banco", or "bankcor", as a part of the name or title of the person,
firm, limited liability company, or corporation, whether the word
is used as the person's, firm's, limited liability company's, or
corporation's official entity name or an assumed business name
under IC 23-0.5-3-4, if the use of the word would create a
substantial likelihood of misleading the public by implying that
the person, firm, limited liability company, or corporation is a
state or federally chartered bank, trust company, savings bank, or
savings association; or
(2) to advertise or represent the person, firm, limited liability
company, or corporation to the public:
(A) as a bank or trust company or a corporate fiduciary; or
(B) as affording the services or performing the duties which by
law only a bank or trust company or a corporate fiduciary is
entitled to afford and perform.
(b) A financial institution organized under the laws of any state or
the United States is authorized to do business in Indiana:
(1) at its principal office;
(2) at any branch office; or
(3) otherwise;
using a name other than its official entity name if the financial
institution notifies the department at least ten (10) days before using
the other name.
(c) An out-of-state financial institution with the word "bank" in its
legal name may use the word "bank" if the financial institution is
insured by the Federal Deposit Insurance Corporation or its successor.
(d) A building and loan association organized under IC 28-4 (before
its repeal) may include in its name or title:
(1) the words "savings bank"; or
(2) the word "bank" if the name or title also includes either the
words "savings bank" or letters "SB".
A building and loan association that includes "savings bank" in its title
under this section does not by that action become a savings bank for
purposes of IC 28-6.1.
(e) The name or title of a savings bank governed by IC 28-6.1 must
include the words "savings bank" or the letters "SB".
(f) A savings association may include in its name the words
"building and loan association".
(g) A bank holding company (as defined in 12 U.S.C. 1841) may use
the word "bank" or "banks" as a part of its name. However, this
subsection does not permit a bank holding company to advertise or
represent itself to the public as affording the services or performing the
duties that by law a bank or trust company only is entitled to afford and
perform.
(h) The department is authorized to investigate the business affairs
of any person, firm, limited liability company, or corporation that uses
"bank", "banc", or "banco" in its title or holds itself out as a bank,
corporate fiduciary, or trust company for the purpose of determining
whether the person, firm, limited liability company, or corporation is
violating any of the provisions of this article, and, for that purpose, the
department and its agents shall have access to any and all of the books,
records, papers, and effects of the person, firm, limited liability
company, or corporation. In making its examination, the department
may examine any person and the partners, officers, members, or agents
of the firm, limited liability company, or corporation under oath,
subpoena witnesses, and require the production of the books, records,
papers, and effects considered necessary. On application of the
department, the circuit or superior court of the county in which the
person, firm, limited liability company, or corporation maintains a
place of business shall, by proper proceedings, enforce the attendance
and testimony of witnesses and the production and examination of
books, papers, records, and effects.
(i) The department is authorized to exercise the powers under IC 28-11-4 against a person, firm, limited liability company, or
corporation that improperly holds itself out as a financial institution.
(j) A person, firm, limited liability company, or corporation who
violates this section is subject to a penalty of five hundred dollars
($500) per day for each and every day during which the violation
continues. The penalty imposed shall be recovered in the name of the
state on relation of the department and, when recovered, shall be paid
into the financial institutions fund established by IC 28-11-2-9.
(k) The word, or a derivation of the word, "bank", "banc", "banco",
or "bankcor" may not be included in the name of a corporate fiduciary
if the inclusion of the word would create a substantial likelihood of
misleading the public by implying that the corporate fiduciary is a state
or federally chartered bank, trust company, savings bank, or savings
association.
(l) A person, firm, limited liability company, or corporation may not
use the name of an existing depository financial institution or holding
company of a depository financial institution, or a name confusingly
similar to that of an existing depository financial institution or holding
company of a depository financial institution, when marketing to or
soliciting business from a customer or prospective customer if the
reference to the existing depository financial institution or holding
company of a depository financial institution is:
(1) without the consent of the existing depository financial
institution or holding company of a depository financial
institution; and
(2) in a manner that could cause a reasonable person to believe
that the marketing material or solicitation:
(A) originated from;
(B) is endorsed by; or
(C) is in any other way the responsibility of;
the existing depository financial institution or holding company of a
depository financial institution.
(m) An existing depository financial institution or holding company
of a depository financial institution may, in addition to any other
remedies available under the law, report an alleged violation of
subsection (l) to the department. If the department finds that the
marketing material or solicitation in question is in violation of
subsection (l), the department may direct the person, firm, limited
liability company, or corporation to cease and desist from using that
marketing material or solicitation in Indiana. If that person, firm,
limited liability company, or corporation persists in using the marketing
material or solicitation, the department may impose a civil penalty of
up to fifteen thousand dollars ($15,000) for each violation. Each
instance in which the marketing material or solicitation is sent to a
customer or prospective customer constitutes a separate violation of
subsection (l).
(n) Nothing in subsection (l) or (m) prohibits the use of or reference
to the name of an existing depository financial institution or holding
company of a depository financial institution in marketing materials or
solicitations, if the use or reference does not deceive or confuse a
reasonable person regarding whether the marketing material or
solicitation:
(1) originated from;
(2) is endorsed by; or
(3) is in any other way the responsibility of;
the existing depository financial institution or holding company of a
depository financial institution.
(o) A person, firm, limited liability company, or corporation may
use the word, or a derivation of the word, "bank", "banc", "banco", or
"bankcor" if the use of the word would not create a substantial
likelihood of misleading the public by implying that the person, firm,
limited liability company, or corporation is a state or federally
chartered bank, trust company, savings bank, or savings association.
(p) As used in this section, "depository financial institution" has the
meaning set forth in IC 28-1-1-6.
(q) The department may adopt rules under IC 4-22-2 to implement
this section.
Formerly: Acts 1933, c.40, s.246; Acts 1935, c.5, s.45. As
amended by P.L.142-1984, SEC.2; P.L.230-1985, SEC.2; P.L.3-1990,
SEC.103; P.L.8-1991, SEC.15; P.L.33-1991, SEC.19; P.L.42-1993,
SEC.31; P.L.122-1994, SEC.81; P.L.262-1995, SEC.33; P.L.79-1998,
SEC.45; P.L.215-1999, SEC.4; P.L.63-2001, SEC.7 and P.L.134-2001,
SEC.8; P.L.258-2003, SEC.6; P.L.73-2004, SEC.35; P.L.10-2006,
SEC.31 and P.L.57-2006, SEC.31; P.L.90-2008, SEC.26;
P.L.186-2015, SEC.30; P.L.159-2017, SEC.33; P.L.86-2018,
SEC.209.