This text of Indiana § 28-8-4.1-1003 (Permissible investments; statutory trust) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)A licensee shall maintain at all
times permissible investments that have a market value computed in
accordance with United States generally accepted accounting principles
of not less than the aggregate amount of all of the licensee's
outstanding money transmission obligations.
(b)Except for permissible investments set forth in section 1004(a)
of this chapter, the department, with respect to any licensee, may by
rule or order limit the extent to which a specific investment maintained
by a licensee within a class of permissible investments may be
considered a permissible investment, if the specific investment
represents undue risk to customers, not reflected in the market value of
investments.
(c)Permissible investments, even if commingled with other assets
of the licensee, are held in
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(a) A licensee shall maintain at all
times permissible investments that have a market value computed in
accordance with United States generally accepted accounting principles
of not less than the aggregate amount of all of the licensee's
outstanding money transmission obligations.
(b) Except for permissible investments set forth in section 1004(a)
of this chapter, the department, with respect to any licensee, may by
rule or order limit the extent to which a specific investment maintained
by a licensee within a class of permissible investments may be
considered a permissible investment, if the specific investment
represents undue risk to customers, not reflected in the market value of
investments.
(c) Permissible investments, even if commingled with other assets
of the licensee, are held in trust for the benefit of the purchasers and
holders of the licensee's outstanding money transmission obligations in
the event of:
(1) insolvency of the licensee;
(2) the filing of a petition by or against the licensee under the
federal Bankruptcy Code (11 U.S.C. 101-110) for bankruptcy or
reorganization;
(3) the filing of a petition by or against the licensee for
receivership;
(4) the commencement of any other judicial or administrative
proceeding for the dissolution or reorganization of the licensee;
or
(5) an action against the licensee by a creditor who is not a
beneficiary of the statutory trust established by this subsection.
The permissible investments impressed with a trust under this
subsection are not subject to attachment, levy of execution, or
sequestration by order of any court, except for a beneficiary of the
statutory trust established by this subsection.
(d) Upon the establishment of a statutory trust in accordance with
subsection (c) or when any funds are drawn on a letter of credit
pursuant to section 1004(a)(4) of this chapter, the director shall notify
the applicable regulator of each state in which the licensee is licensed
to engage in money transmission, if any, of the establishment of the
trust or the funds drawn on the letter of credit, as applicable. The notice
required by this subsection is considered satisfied if performed
pursuant to a multistate agreement or through the NMLS. Funds drawn
on a letter of credit, and any other permissible investments held in trust
for the benefit of the purchasers and holders of the licensee's
outstanding money transmission obligations, are considered held in
trust for the benefit of those purchasers and holders on a pro rata and
equitable basis in accordance with statutes pursuant to which
permissible investments are required to be held in Indiana, and in other
states, as applicable. Any statutory trust established under this section
is terminated upon extinguishment of all of the licensee's outstanding
money transmission obligations.
(e) The department by rule or by order may allow other types of
investments that the department determines are of sufficient liquidity
and quality to be a permissible investment. The department may
participate in efforts with other state regulators to determine that other
types of investments are of sufficient liquidity and quality to be a
permissible investment.