§ 28-5-1-4 — Definitions; certificate of authority; branches; automated teller machines

Indiana § 28-5-1-4

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

Text

(a) As used in this section:
"Automated teller facility" means electronic or mechanical
equipment that performs routine transactions for the public at locations
off premises of the principal office or branch office of a company that
holds a certificate to engage in business under this chapter and that is
authorized to issue, negotiate, and sell certificates of investment or
indebtedness.
"Branch" means any office, agency, mobile unit, messenger service,
or other place of business at which:
(1) deposits are received;
(2) negotiable or transferable instruments or orders, or similar
instruments, are paid; or
(3) money is lent.
However, the term does not include the principal office of a company
or an automated teller facility.
"Financial institution" has the same meaning as in IC 28-1-1-3.
(b) Any domestic corporation organized under the general
corporation laws of Indiana may engage in business as an industrial
loan and investment company subject to the limitations and restrictions
set forth in this chapter. The department may issue a certificate
authorizing a corporation to engage in business under this chapter after
the department considers and investigates all the following:
(1) The financial standing and character of the incorporators,
organizers, directors, principal shareholders, or controlling
corporations.
(2) The character, qualifications, and experience of the officers
and directors of the corporation.
(3) The future earnings prospects for the proposed corporation in
the community in which the corporation will be located.
(4) The adequacy of the corporation's capital.
If the department determines any of the factors described in
subdivisions (1) through (4) unfavorably, the department may not issue
a certificate authorizing the corporation to engage in business under
this chapter. Certificates issued under this section must state whether
the corporation is authorized to accept deposits and, if not, must
provide that the corporation may do business under this article only as
restricted by section 21 of this chapter.
(c) Any company that is authorized to accept deposits and that holds
a certificate to engage in business under this chapter is entitled to
establish one (1) or more branches de novo and one (1) or more
branches by acquisition in any location or locations within Indiana, at
which any business of the company may be transacted to the same
extent as at the principal office of the company.
(d) As a condition to the establishment and operation of a branch or
branches under this section, the company must:
(1) obtain prior written approval of the department;
(2) operate each branch under the correct name of the company
and its name must contain in addition the word "branch"; and
(3) demonstrate that the applicant company will have adequate
capital, sound management, and adequate future earnings
prospects after the establishment of the branch.
(e) The location of the principal office or any branch established
under this section may be changed at any time when authorized by the
board of directors of the company and approved by the department.
(f) Any company desiring to open or establish one (1) or more
branches or change location of an existing branch or the principal
office must file a written application therefor, in such form and
containing such information as may be prescribed by the department.
If the department determines that the requirements of subsection (d)
have been satisfied, the department may in its discretion approve the
application.
(g) A company is entitled to open or establish an automated teller
facility in any location within Indiana or as permitted by the laws of the
state in which the automated teller machine is to be located. An
automated teller facility may be owned or operated individually by any
company or jointly on a cost sharing or fee basis.
(h) A branch by acquisition may be established under this section
only if done in compliance with applicable provisions of IC 28-1-7 or
IC 28-1-8.
(i) A company that is authorized to accept deposits and that holds
a certificate to engage in business under this chapter is entitled to
establish one (1) or more branches de novo and one (1) or more
branches by acquisition in any location outside Indiana. Any business
of the company may be transacted at a branch established under this
subsection to the same extent as at the principal office of the company,
subject to IC 28-2-18-19.
Formerly: Acts 1935, c.181, s.4; Acts 1951, c.79, s.1; Acts
1967, c.45, s.1; Acts 1971, P.L.400, SEC.1; Acts 1973, P.L.284, SEC.1.
As amended by P.L.141-1984, SEC.9; P.L.269-1985, SEC.1;
P.L.270-1985, SEC.1; P.L.33-1991, SEC.46; P.L.171-1996, SEC.43;
P.L.192-1997, SEC.11; P.L.141-2005, SEC.9; P.L.90-2008,
SEC.36.