Indiana § 28-1-3.1-2 Authority of department to take possession of business and property;
conditions; duties of department

Indiana Statutes

§ 28-1-3.1-2 — Authority of department to take possession of business and property; conditions; duties of department

Indiana § 28-1-3.1-2

Art. 1DEPARTMENT OF FINANCIAL INSTITUTIONS

Ch. 3.1Liquidation of Financial Institutions

This text of Indiana § 28-1-3.1-2 (Authority of department to take possession of business and property; conditions; duties of department) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 28-1-3.1-2 (2026).

Text

(a)The department may take possession of the business and property of any financial institution except a creditor licensed to make supervised or regulated loans under IC 24-4.5, whenever it appears to the department that the financial institution:

(1)is insolvent or in imminent danger of insolvency;

(2)is in an unsafe or unsound condition;

(3)has refused to pay its deposits or obligations in accordance with the terms under which those deposits or obligations were incurred;

(4)has refused to submit its records and affairs for inspection or examination by the department or federal authorities;

(5)has violated any court order, statute, rule, or regulation of the department or its articles of incorporation and that continued control of its own affairs threatens injury to the public, the

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(a) The department may take possession of the
business and property of any financial institution except a creditor
licensed to make supervised or regulated loans under IC 24-4.5,
whenever it appears to the department that the financial institution:
(1) is insolvent or in imminent danger of insolvency;
(2) is in an unsafe or unsound condition;
(3) has refused to pay its deposits or obligations in accordance
with the terms under which those deposits or obligations were
incurred;
(4) has refused to submit its records and affairs for inspection or
examination by the department or federal authorities;
(5) has violated any court order, statute, rule, or regulation of the
department or its articles of incorporation and that continued
control of its own affairs threatens injury to the public, the
financial community, its depositors, or other creditors;
(6) requests through its board of directors that the department take
possession for the benefit of depositors, other creditors,
shareholders, or other persons;
(7) has an impairment of its capital (the capital of a bank or trust
company shall, for the purpose of this subdivision, be considered
to be unimpaired so long as the sound value of its assets over and
above its liabilities, exclusive of liabilities for capital notes,
debentures, and capital stock, as determined by the department,
equals or exceeds the minimum capital or capital stock required
by the department for a bank or trust company);
(8) has neglected or refused, for a period of thirty (30) days, to
comply with the terms of a duly issued order of the department,
essential to preserve the solvency of the financial institution;
(9) has failed to pay the fees charged by the department under IC 28-11-3-5 after due notice of the amount of the fee has been
given;
(10) has breached a fiduciary duty under IC 30-4-3-6; or
(11) has violated IC 30-4-3-7 in a way that has caused or may
cause harm to fiduciary accounts.
(b) When the department makes a determination to take possession
of the business and property of a financial institution under subsection
(a), the department shall:
(1) make a finding to that effect and enter that finding on the
records of the proceedings of the department; and
(2) cause a certified copy of the finding to be served on the
president or other executive officer actively in charge of the
financial institution and demand possession of the business,
property, and records of the financial institution from the officer.
The financial institution shall immediately surrender the
possession to the department.
(c) The department or its receiver is not required to become the
owner of any property to fulfill the liquidation requirements of this
chapter.