§ 28-5-1-12 — Certificates of indebtedness or investment; form; payment; withdrawals

Indiana § 28-5-1-12

• Jurisdiction: Indiana
• Art. 5: INDUSTRIAL LOAN AND INVESTMENT
• Ch. 1: Industrial Loan and Investment Act

Text

Any certificates of indebtedness or investment
issued by any such company pursuant to the provisions of this chapter
may be issued as fully paid or to be paid for in installments by the
purchaser. All of the terms and conditions upon which any such
certificate of indebtedness or investment is issued shall be clearly
stated in the certificate of indebtedness or investment and any such
company may by contract provide that it shall not be required to pay on
such certificates of indebtedness or investment any amount exceeding
its net receipts of the previous calendar month, in which event such
certificates must be redeemed in the order in which they are presented
for redemption or as otherwise prescribed by special regulation of the
department.
(a) Fully paid certificates shall be payable at a date certain not less
than ninety (90) days subsequent to the date of issue thereof, except
that the company may pay such certificates prior to the maturity date
whenever its reserve balance equals or exceeds the amount provided in
section 13 of this chapter. Such company may at any time redeem any
of such certificates upon thirty (30) days notice in writing to the holder
thereof prior to such redemption. If such certificate is not presented for
payment by the holder thereof at maturity, such certificate shall be
payable thereafter only upon at least thirty (30) days notice in writing
given by the holder thereof to the company issuing the same, except
that any such company may waive such notice whenever its reserve
balance equals or exceeds the amount provided in section 13 of this
chapter.
(b) Installment certificates shall be payable only after ninety (90)
days notice in writing given by the holder of the certificate to the
company issuing the same, except that any such company may waive
the notice whenever its reserve balance equals or exceeds the amount
provided in section 13 of this chapter. The company may at any time
redeem any of the certificates upon thirty (30) days notice in writing to
the holder of the certificate prior to such redemption.
(c) Subject to subsection (b), a company may permit the holder of
any installment certificate of indebtedness or investment to make
withdrawals from the certificate by negotiable or transferable
instruments or orders, if the certificate is held by the type or category
of holder permitted to hold a similar account with a financial institution
controlled under 12 U.S.C. 3502.
(d) A company may require the owner of any installment certificate
of indebtedness or investment which is subject to withdrawal by
negotiable or transferable instruments or orders to maintain a minimum
balance in that certificate of indebtedness or investment and may
charge fees that are reasonable and competitive if the balance in the
certificate of indebtedness or investment falls below a minimum
required balance. Interest paid on certificates of investment or
indebtedness subject to withdrawal by negotiable or transferable
instruments or orders may not exceed the maximum rate allowable for
those financial institutions whose interest rates are controlled under 12
U.S.C. 3502.
Formerly: Acts 1935, c.181, s.12. As amended by Acts 1980,
P.L.177, SEC.1; Acts 1981, P.L.258, SEC.1; P.L.269-1983, SEC.2;
P.L.269-1985, SEC.2; P.L.136-2018, SEC.210.