§ 28-13-17-8 — Financial subsidiary activities engaged in as principal or new financial subsidiary activities

Indiana § 28-13-17-8

• Jurisdiction: Indiana
• Art. 13: CORPORATE GOVERNANCE
• Ch. 17: Financial Subsidiary Activities of Financial Institutions

Text

(a) A financial institution may not establish,
control, or hold an interest of a financial subsidiary that engages in
financial subsidiary activities as principal or commence any new
financial subsidiary activity under this section or under 12 U.S.C.
1831w(a) unless the following occur:
(1) An application has been filed with the department before the
financial subsidiary of the financial institution conducts financial
subsidiary activities.
(2) The department determines that the financial subsidiary
activity poses no significant adverse effects to the safety and
soundness of the financial institution and approves the
application. An approval under this subdivision may be made
subject to conditions and restrictions determined necessary by the
department to prevent unsafe or unsound banking practices.
(3) The financial institution and the financial subsidiary comply
with 12 U.S.C. 371c and 12 U.S.C. 371c-1, as if the subsidiary
were a financial subsidiary, as defined in 12 U.S.C. 371c(e)(1).
(4) All financial institution affiliates of the financial institution
are well-capitalized, as defined in the appropriate capital
regulation and guidance of each financial institution's primary
federal regulator, and the financial institution complies with the
capital deduction requirement in accordance with 12 CFR
362.4(e)(1) through 12 CFR 362.4(e)(3), discloses that capital
separation in any published financial statements and does not
consolidate the financial subsidiary's assets and liabilities with
those of the financial institution in any published financial
statements.
(5) The financial institution and the financial subsidiary meet the
financial and operational safeguards applicable to a financial
subsidiary of a national bank conducting the same activities as
provided in 12 U.S.C. 24a(d).
(b) A financial institution that controls or holds an interest in a
financial subsidiary engaged in a financial subsidiary activity must
comply with the requirements of subsection (a)(2) through (a)(5), as
long as the financial institution's financial subsidiary is engaged in the
financial subsidiary activity.

Legislative History

As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.