§ 28-15-2-2 — Request to exercise rights and privileges granted federal savings associations; appeal

Indiana § 28-15-2-2

• Jurisdiction: Indiana
• Art. 15: SAVINGS ASSOCIATIONS
• Ch. 2: Powers of Savings Associations

Text

(a) As used in this section, "rights and
privileges" means the power:
(1) to:
(A) create;
(B) deliver;
(C) acquire; or
(D) sell;
a product, a service, or an investment that is available to or
offered by; or
(2) to engage in mergers, consolidations, reorganizations, or other
activities or to exercise other powers authorized for;
federal savings associations domiciled in Indiana.
(b) Subject to this section, savings associations may exercise the
rights and privileges that are granted to federal savings associations.
(c) A savings association that intends to exercise any rights and
privileges that are:
(1) granted to federal savings associations; but
(2) not authorized for savings associations under:
(A) the Indiana Code (except for this section); or
(B) a rule adopted under IC 4-22-2;
shall submit a letter to the department, describing in detail the
requested rights and privileges granted to federal savings associations
that the savings association intends to exercise. If available, copies of
relevant federal law, regulations, and interpretive letters must be
attached to the letter.
(d) The department shall promptly notify the requesting savings
association of its receipt of the letter submitted under subsection (c).
Except as provided in subsection (f), the savings association may
exercise the requested rights and privileges sixty (60) days after the
date on which the department receives the letter unless otherwise
notified by the department.
(e) The department may deny the requested rights and privileges if
the department finds that:
(1) federal savings associations in Indiana do not possess the
requested rights and privileges;
(2) the exercise of the requested rights and privileges by the
savings association would adversely affect the safety and
soundness of the savings association;
(3) the exercise of the requested rights and privileges by the
savings association would result in an unacceptable curtailment
of consumer protection; or
(4) the failure of the department to approve the requested rights
and privileges will not result in a competitive disadvantage to the
savings association.
(f) The sixty (60) day period referred to in subsection (d) may be
extended by the department based on a determination that the savings
association letter raises issues requiring additional information or
additional time for analysis. If the sixty (60) day period is extended
under this subsection, the savings association may exercise the
requested rights and privileges only if the savings association receives
prior written approval from the department. However:
(1) the department must:
(A) approve or deny the requested rights and privileges; or
(B) convene a hearing;
not later than sixty (60) days after the department receives the
savings association's letter; and
(2) if a hearing is convened, the department must approve or deny
the requested rights and privileges not later than sixty (60) days
after the hearing is concluded.
(g) The exercise of rights and privileges by a savings association in
compliance with and in the manner authorized by this section does not
constitute a violation of any provision of the Indiana Code or rules
adopted under IC 4-22-2.
(h) If a savings association receives approval to exercise the
requested rights and privileges granted to national savings associations
domiciled in Indiana, the department shall determine by order whether
all savings associations may exercise the same rights and privileges. In
making the determination required by this subsection, the department
must ensure that the exercise of the rights and privileges by all savings
associations will not:
(1) adversely affect their safety and soundness; or
(2) unduly constrain Indiana consumer protection provisions.
(i) If the department denies the request of a savings association
under this section to exercise any rights and privileges that are granted
to national savings associations, the company may appeal the decision
of the department to the circuit court, superior court, or probate court
with jurisdiction in the county in which the principal office of the
savings association is located.

Legislative History

As added by P.L.193-1997, SEC.2. Amended by P.L.73-2004, SEC.44; P.L.213-2007, SEC.105; P.L.217-2007, SEC.103; P.L.35-2010, SEC.206; P.L.84-2016, SEC.129.