§ 28-7-1-34 — Out-of-state credit unions; branch offices in Indiana; approval of department or exemption from approval; field of membership; application; denial, suspension, or revocation of application; compliance; examinations; agreements between department and other supervisory agencies

Indiana § 28-7-1-34

• Jurisdiction: Indiana
• Art. 7: SPECIALIZED FINANCIAL INSTITUTIONS
• Ch. 1: Credit Unions

Text

(a) A credit union organized under the laws
of another state may establish a branch office in Indiana if:
(1) the credit union:
(A) files an application with the department; or
(B) otherwise meets criteria established by the department to be
exempt from application;
(2) the branch office is necessary to serve members within the
field of membership of the credit union;
(3) the field of membership of the credit union is consistent with
the laws of Indiana;
(4) the law of the state in which the credit union was organized
provides for the establishment of a branch office in that state by
an Indiana credit union; and
(5) either:
(A) the department approves the application of the credit union;
or
(B) the credit union meets the department's established criteria
to be exempt from the department's approval.
(b) If the credit union that has established a branch office in Indiana
is subsequently granted an expansion of its field of membership by its
chartering state, the expanded field of membership must be approved
by the department before the expanded field of membership can be
served in Indiana. If an out-of-state credit union desires to establish a
branch office in Indiana and that credit union's field of membership is
an incorporated entity, the incorporated entity may not be admitted to
do business in Indiana as a foreign corporation by the secretary of
state's office until the department has approved the entry of the credit
union to establish a branch office.
(c) Subject to subsection (a)(1)(B), the department shall provide to
a credit union desiring to establish a branch office in Indiana an
application, which must provide at least the following information:
(1) The credit union's financial condition.
(2) The credit union's field of membership and the number of
members to be served in Indiana.
(3) The proposed location of any branch offices.
(4) A letter of approval from the supervisory agency in the state
in which the credit union's principal office is located, including a
statement indicating whether such supervisory agency conducts
periodic examinations of the credit union.
(5) A statement that the credit union, with respect to its operation
in this state, will comply with all applicable state and federal
laws, rules, and regulations, as determined by the director.
(d) The department shall approve or deny an application within one
hundred twenty (120) days. The department may deny the application
or suspend or revoke an application previously approved if it finds any
of the following:
(1) That the credit union is insolvent or in imminent danger of
insolvency.
(2) That the credit union does not have the approval of its
supervisory agency.
(3) That the credit union fails to meet the requirements of
subsection (e).
(4) A failure to comply with any written agreement or final order
of the department or chartering supervisory agency that has
regulatory authority over the credit union.
(5) That the credit union has been serving an expanded field of
membership in Indiana before obtaining the approval of the
department for the expansion in the field of membership.
(e) Any out-of-state credit union that has been approved to establish
branch offices in this state shall, in addition to such other provisions of
law applicable to credit unions, comply with the following:
(1) Designate a resident agent for the service of process in this
state.
(2) Submit a copy of all reports required by its supervisory
agency, unless otherwise required by the department to submit
reports prescribed by the department.
(3) Submit a copy of every:
(A) regulatory examination report; and
(B) insurance examination report;
to the department.
(4) Conduct its lending activities in accordance with Indiana law.
(f) The department may examine such a branch office if it has
reason to believe that the branch office is not operating in compliance
with laws, rules, or regulations. The reasonable cost of any such
examination authorized by this subsection shall be paid by the credit
union.
(g) For purposes of this section, IC 28-1-2-30 applies to information
obtained by or provided to the department concerning branch offices
established under this section.
(h) The department may enter into cooperative, coordinating, and
information sharing agreements with an organization listed in IC 28-11-3-3 with respect to the periodic examination or other supervision
of a branch:
(1) in Indiana of an out-of-state credit union; or
(2) of an Indiana state credit union in a host state;
and the department may accept the organization's reports of
examination and reports of investigation instead of conducting the
department's own examinations or investigations.
(i) The department may enter into agreements with a financial
institution supervisory agency that has concurrent jurisdiction over an
Indiana state credit union or an out-of-state credit union operating a
branch in Indiana under this chapter to:
(1) engage the services of the agency's examiners at a reasonable
rate of compensation; or
(2) provide the services of the department's examiners to the
agency at a reasonable rate of compensation.
An agreement under this subsection is subject to IC 36-1-7.
(j) The department may enter into joint examinations or joint
enforcement actions with other credit union supervisory agencies
having concurrent jurisdiction over a branch established and
maintained in Indiana by an out-of-state credit union or a branch
established and maintained by an Indiana state credit union in a host
state. The department may take action independently if the department
considers the action to be necessary or appropriate to carry out its
responsibilities under this chapter or to ensure compliance with Indiana
law.
(k) An out-of-state credit union that maintains at least one (1)
branch in Indiana is subject to IC 28-11-3-5. Fees may be shared with
other financial institution supervisory agencies or an organization
affiliated with or representing at least one (1) credit union supervisory
agency under agreements between those parties and the department.

Legislative History

As added by P.L.271-1983, SEC.2. Amended by P.L.166-1988, SEC.2; P.L.263-1995, SEC.30; P.L.192-1997, SEC.21; P.L.11-1998, SEC.19; P.L.213-2007, SEC.69; P.L.217-2007, SEC.67; P.L.69-2018, SEC.58.