(a)Savings associations may do the following:
(1)Accept deposit accounts.
(2)Issue evidence of deposit account ownership.
(3)Declare and distribute earnings to members.
(4)Pay, in part or in full, withdrawal requests of deposit accounts.
(5)Subject to the provisions and restrictions of 12 U.S.C. 84 and
12 CFR 32: (A)Make loans to members on the security of deposit accounts.
(B)Make property improvement loans.
(C)Make other loans as provided under IC 28-15-8.
(E)Accept additional collateral on mortgage loans.
(F)Purchase and sell loans.
(G)Negotiate loan servicing agreements.
(H)Purchase and sell participating interests in loans.
(I)Issue letters of credit with specific expiration dates.
(J)Make secured or unsecured loans, which are partially
insured
Free access — add to your briefcase to read the full text and ask questions with AI
(a) Savings associations may do the following:
(1) Accept deposit accounts.
(2) Issue evidence of deposit account ownership.
(3) Declare and distribute earnings to members.
(4) Pay, in part or in full, withdrawal requests of deposit accounts.
(5) Subject to the provisions and restrictions of 12 U.S.C. 84 and
12 CFR 32:
(A) Make loans to members on the security of deposit accounts.
(B) Make property improvement loans.
(C) Make other loans as provided under IC 28-15-8.
(D) Make mortgage loans.
(E) Accept additional collateral on mortgage loans.
(F) Purchase and sell loans.
(G) Negotiate loan servicing agreements.
(H) Purchase and sell participating interests in loans.
(I) Issue letters of credit with specific expiration dates.
(J) Make secured or unsecured loans, which are partially
insured or guaranteed in any manner by any state of the United
States, the United States government, or any of its agencies or
government sponsored enterprises.
(K) Purchase commercial paper that is denominated in United
States currency and that:
(i) is rated by at least one (1) nationally recognized
investment rating service in one (1) of the two (2) highest
grades; or
(ii) meets another standard of creditworthiness determined to
be appropriate by the director.
(L) Make, purchase, or participate in alternative mortgage loans
as provided in IC 28-15-11.
(M) Subject to any regulation, rule, policy, or guidance adopted
by the department and pursuant to its lending authority, engage
directly or indirectly in any tax equity finance transaction
permissible for a national bank or federal savings association
under 12 CFR 7.1025. The authority to engage in tax equity
finance transactions under this clause is separate from, and does
not limit, any investment authorities available to a savings
association. A tax equity finance transaction is subject to the
substantive legal requirements of a loan, including, without
limitation, IC 28-15-6.
(6) Acquire and sell real estate in satisfaction of debts previously
contracted.
(7) Acquire real estate for the convenient transaction of its
business. A savings association has the same powers under this
subdivision as a bank or trust company has under IC 28-1-11-5.
(8) Notwithstanding any other law, establish, maintain, or relocate
one (1) or more branch offices by following the provisions of IC 28-2-13, IC 28-2-17, or IC 28-2-18 as if the savings association
were a bank.
(9) Become a member in any agency or instrumentality of the
federal government. For the purposes of this subdivision,
membership in an agency or instrumentality of the federal
government may include:
(A) purchasing stock;
(B) purchasing notes and debentures; or
(C) borrowing money.
(10) Subject to any limitations imposed by the department
through policy:
(A) invest the money deposited in the savings association in the
shares of the capital stock, bonds, debentures, notes, or other
obligations of a federal home loan bank of the United States;
(B) become a member of the federal home loan bank of the
district in which Indiana is located or an adjoining district;
(C) borrow money from:
(i) a federal home loan bank described in clause (B);
(ii) the Federal Deposit Insurance Corporation; or
(iii) any other corporation;
(D) transfer, assign to, and pledge with a federal home loan
bank described in clause (B), the Federal Deposit Insurance
Corporation, or any other corporation any of the bonds, notes,
contracts, mortgages, securities, or other property of the savings
association held or acquired as security for the payment of loans
entered into under clause (C); and
(E) exercise all rights, powers, and privileges conferred upon,
and do all things and perform all acts required of, members or
shareholders of a federal home loan bank by the Federal Home
Loan Bank Act (12 U.S.C. 1421 through 1449).
(11) Subject to the provisions and restrictions of 12 U.S.C. 24 and
12 CFR 1, invest in the following types of securities:
(A) Bonds, notes, certificates, and other valid obligations of the
United States government or any agency of the United States
government.
(B) Accounts offered by federally insured banks, savings banks,
and savings associations.
(C) Bonds, notes, or other evidences of indebtedness that are
general obligations supported by the full faith and credit of any
state in the United States or any city, town, or other political
subdivision in any state in the United States if the obligations:
(i) have been assigned one (1) of the four (4) highest grades
by a nationally recognized investment rating service; or
(ii) meet another standard of creditworthiness determined to
be appropriate by the director.
(D) Shares of stock of a subsidiary that does not exercise a
power or engage in any activity that is not authorized for the
savings association. The investment power granted by this
subdivision is separate from the investment power granted by
IC 28-15-9.
(E) Corporate debt securities that are denominated in United
States currency and that:
(i) are rated by at least one (1) nationally recognized
investment rating service in one (1) of the four (4) highest
grades; or
(ii) meet another standard of creditworthiness determined to
be appropriate by the director.
Corporate debt securities in which a savings association invests
under this clause must be convertible into stock at the sole
option of the holder, and a savings association is prohibited
from exercising the conversion option.
(F) Shares of open end investment companies that are eligible
for purchase by national banks.
(G) Bankers' acceptances that are eligible for purchase by
national banks.
(12) For the purpose of:
(A) check and deposit sorting and posting;
(B) computation and posting of interest and other credits and
charges;
(C) preparation and mailing of checks, statements, notices, and
similar items; or
(D) other clerical, bookkeeping, accounting, statistical, or
similar functions performed by a savings association;
invest in a corporation organized in any state to perform those
functions for two (2) or more savings associations, each of which
owns a portion of the capital stock of the corporation. The total
investment of a savings association under this subdivision may
not exceed ten percent (10%) of the capital and surplus of the
savings association. A savings association may not invest in this
type of corporation unless the corporation furnishes assurances to
the department that it will subject itself to examination by the
department to the same extent as if the services were performed
by the savings association.
(13) Lend money to other savings associations:
(A) the deposits of which are insured by the Federal Deposit
Insurance Corporation; and
(B) that are incorporated and operating under the laws of any
state or of the United States.
(14) Borrow money and mortgage or pledge its property to secure
payment.
(15) Issue subordinated notes or debentures.
(16) Assess and collect interest, fees, and other charges.
(17) Insure its deposit accounts with the Federal Deposit
Insurance Corporation or its successor.
(18) Act as an agent for the United States or its instrumentalities.
(19) Accept property for safe keeping or escrow.
(20) Rent or lease safe deposit boxes.
(21) Issue and sell checks, drafts, money orders, and other
instruments for the transmission or payment of money.
(22) Exercise all the powers that:
(A) are incidental and proper; or
(B) may be necessary and usual;
in carrying on the business of the savings association.
(23) Purchase or construct buildings, hold legal title to the
buildings, and lease the buildings for public purposes to
municipal corporations or other public authorities that have
resources sufficient to make payment of all rentals as they become
due. Each lease agreement entered into under this subdivision
must provide that, upon expiration, the lessee will become the
owner of the building.
(24) Open or establish automated teller machines at any location.
An automated teller machine opened or established under this
subdivision may be owned and operated individually or jointly on
a cost sharing or fee basis.
(25) Act:
(A) in any fiduciary capacity in which a bank or trust company
is permitted to act under this title; and
(B) as an agent for the sale of real estate, without bond or other
security.
(26) Accept and maintain demand deposit accounts if the savings
association is insured by the Federal Deposit Insurance
Corporation or its successor.
(27) Without the approval of the department, to the extent
authorized by the board of directors of the savings association,
establish or maintain agencies that:
(A) only service and originate, but do not approve, loans and
contracts; or
(B) manage or sell real estate owned by the savings association.
An agency established or maintained under this subdivision may
offer any services not referred to in this subdivision with the
approval of the department, except for accepting payment on
savings accounts. An agency shall maintain records of all
business it transacts and transmit copies to a branch or home
office of the savings association.
(b) Subject to any limitations or restrictions that the department or
a federal regulator may impose by regulation, rule, policy, or guidance,
a savings association may purchase and hold life insurance as follows:
(1) Life insurance purchased or held in connection with employee
compensation or benefit plans approved by the savings
association's board of directors.
(2) Life insurance purchased or held to recover the cost of
providing preretirement or postretirement employee benefits
approved by the savings association's board of directors.
(3) Life insurance on the lives of borrowers.
(4) Life insurance held as security for a loan.
(5) Life insurance that a national bank may purchase or hold
under 12 U.S.C. 24 (Seventh).