§ 28-11-4-3 — Violations by certain individuals; director's notice of intent to issue order; felonies; civil penalties

Indiana § 28-11-4-3

• Jurisdiction: Indiana
• Art. 11: DEPARTMENT OF FINANCIAL INSTITUTIONS
• Ch. 4: Enforcement Powers of the Department

Text

(a) If the director determines that a current or
former director, officer, or employee of a financial institution has:
(1) committed a violation of a statute, a rule, a final cease and
desist order, any condition imposed in writing by the director in
connection with the grant of any application or other request by
the financial institution, or any written agreement between the
financial institution and the director or the department;
(2) engaged or participated in an unsafe or unsound practice in
connection with the financial institution;
(3) committed or engaged in an act, an omission, or a practice that
constitutes a breach of fiduciary duty as director, officer, or
employee; or
(4) been convicted of, or is under indictment for, a felony
involving fraud, deceit, or misrepresentation under the laws of
Indiana or any other jurisdiction;
the director, subject to subsection (b), may issue and serve upon the
officer, director, or employee a notice of the director's intent to issue an
order removing the person from the person's office or employment, an
order prohibiting any participation by the person in the conduct of the
affairs of any financial institution, or an order both removing the person
and prohibiting the person's participation.
(b) A violation, practice, or breach specified in subdivision (a) is
subject to the authority of the director under subsection (a) if the
director finds any of the following:
(1) By reason of the violation, practice, or breach, the financial
institution has suffered or will probably suffer substantial
financial loss or other damage.
(2) The interests of the financial institution's depositors could be
seriously prejudiced by reason of the violation, practice, or breach
of fiduciary duty.
(3) The violation, practice, or breach involves personal dishonesty
on the part of the officer, director, or employee involved.
(4) The violation, practice, or breach demonstrates a willful or
continuing disregard by the officer, director, or employee for the
safety and soundness of the financial institution.
(c) A person who:
(1) is under indictment for; or
(2) has been convicted of;
a felony involving fraud, deceit, or misrepresentation under the laws of
Indiana or any other jurisdiction may not serve as a director, an officer,
or an employee of a financial institution, or serve in any similar
capacity, unless the person obtains the written consent of the director.
(d) A financial institution that willfully permits a person to serve the
financial institution in violation of subsection (b) or (c) is subject to a
civil penalty of five hundred dollars ($500) for each day the violation
continues. A civil penalty paid under this subsection must be deposited
into the financial institutions fund established by IC 28-11-2-9.

Legislative History

As added by P.L.33-1991, SEC.56. Amended by P.L.262-1995, SEC.76; P.L.258-2003, SEC.19; P.L.10-2006, SEC.74 and P.L.57-2006, SEC.74; P.L.213-2007, SEC.100; P.L.217-2007, SEC.98; P.L.35-2010, SEC.198; P.L.137-2014, SEC.39.