§ 28-1-23.5-7 — Evaluation of potential risks; authorization to act

Indiana § 28-1-23.5-7

• Jurisdiction: Indiana
• Art. 1: DEPARTMENT OF FINANCIAL INSTITUTIONS
• Ch. 23.5: Electronic Activity by Financial Institutions

Text

(a) As used in this section, "potential risks",
with respect to a proposed electronic activity by a financial institution,
include the following:
(1) Legal risks.
(2) Transactional risks.
(3) Risk of the financial institution's noncompliance with
applicable statutes, regulations, or supervisory policies.
(4) Risk of harm to the financial institution's reputation.
(b) A financial institution's board of directors and executive officers
are responsible for ensuring that all potential risks are evaluated and
taken into account before the financial institution undertakes any
electronic activity. The board of directors and the executive officers
may not delegate their responsibility under this subsection to other
persons within the financial institution or to outside parties.
(c) After a financial institution's board of directors and executive
officers have acted under subsection (b) to conduct an evaluation of the
potential risks associated with an electronic activity, the financial
institution may perform, provide, or deliver through electronic means
or facilities any activity, function, product, or service that it is
otherwise authorized to perform, provide, or deliver, subject to this
chapter and any other applicable statutes, regulations, or supervisory
policies.

Legislative History

As added by P.L.10-2006, SEC.32 and P.L.57-2006, SEC.32.