§ 28-7-1-9.2 — Request to exercise rights and privileges granted to federal credit unions; appeal

Indiana § 28-7-1-9.2

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

Text

2. (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 credit unions domiciled in Indiana.
(b) A credit union that intends to exercise any rights and privileges
that are:
(1) granted to federal credit unions; but
(2) not authorized for credit unions under the Indiana Code
(except for this section) or any rule adopted under the Indiana
Code;
shall submit a letter to the department describing in detail the requested
rights and privileges granted to federal credit unions that the credit
union intends to exercise. If available, copies of relevant federal law,
regulations, and interpretive letters must be attached to the letter
submitted by the credit union.
(c) The department shall promptly notify the requesting credit union
of the department's receipt of the letter submitted under subsection (b).
Except as provided in subsection (e), the credit union 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.
(d) The department may deny the requested rights and privileges if
the department finds that:
(1) federal credit unions domiciled in Indiana do not possess the
requested rights and privileges;
(2) the exercise of the requested rights and privileges by the credit
union would adversely affect the safety and soundness of the
credit union;
(3) the exercise of the requested rights and privileges by the credit
union 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
credit union.
(e) The sixty (60) day period referred to in subsection (c) may be
extended by the department based on a determination that the credit
union's letter raised issues requiring additional information or
additional time for analysis. If the sixty (60) day period is extended
under this subsection, the credit union may exercise the requested
rights and privileges only if the credit union 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
credit union'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.
(f) The exercise of rights and privileges by a credit union in
compliance with and in the manner authorized by this section is not a
violation of any provision of the Indiana Code or rules adopted under
IC 4-22-2.
(g) If a credit union receives approval to exercise the requested
rights and privileges granted to federal credit unions domiciled in
Indiana, the department shall determine by order whether all credit
unions 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 credit unions will
not:
(1) adversely affect their safety and soundness; or
(2) unduly constrain Indiana consumer protection provisions.
(h) If the department denies the request of a credit union under this
section to exercise any rights and privileges that are granted to federal
credit unions, the credit union 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 credit
union is located. In an appeal under this section, the court shall
determine the matter de novo.

Legislative History

As added by P.L.63-2001, SEC.17, P.L.81-2001, SEC.6 and P.L.134-2001, SEC.19. Amended by P.L.73-2004, SEC.37; P.L.213-2007, SEC.67; P.L.217-2007, SEC.65; P.L.35-2010, SEC.149; P.L.84-2016, SEC.127.