Indiana Senate Bill SB0464 Latest Draft

                            *ES0464.1*
March 20, 2025
ENGROSSED
SENATE BILL No. 464
_____
DIGEST OF SB 464 (Updated March 18, 2025 2:44 pm - DI 154)
Citations Affected:  IC 24-4.4; IC 24-4.5; IC 24-5; IC 28-7; IC 28-10.
Synopsis:  Financial institutions and consumer credit. Provides that a
reference to federal law in: (1) the First Lien Mortgage Lending Act;
(2) the Uniform Consumer Credit Code (UCCC); or (3) the Indiana
Code title governing financial institutions; is a reference to the law as
in effect December 31, 2024 (rather than December 31, 2023, under
current law). Amends the definition of "principal" for purposes of the
UCCC provisions governing consumer loans to specify that the term
does not include any loan proceeds held as security for the loan.
Amends the definition of "consumer transaction" for purposes of the
deceptive consumer sales act to include conduct that arises from,
occurs in connection with, or otherwise involves a transaction between
a supplier and a state or local law enforcement agency within Indiana.
Amends the definition of "supplier" for purposes of the deceptive
consumer sales act to include any entity that provides a product or
service to a state or local law enforcement agency. Provides that a court
can only provide relief in a transaction between a supplier and a law
enforcement agency when the action is brought and enforced by the 
(Continued next page)
Effective:  July 1, 2025.
Bassler, Baldwin, Gaskill
(HOUSE SPONSORS — TESHKA, ANDRADE)
January 13, 2025, read first time and referred to Committee on Insurance and Financial
Institutions.
January 23, 2025, reported favorably — Do Pass.
January 27, 2025, read second time, ordered engrossed. Engrossed.
January 30, 2025, read third time, passed. Yeas 48, nays 0.
HOUSE ACTION
March 3, 2025, read first time and referred to Committee on Financial Institutions.
March 20, 2025, amended, reported — Do Pass.
ES 464—LS 6738/DI 101 Digest Continued
attorney general. Makes a technical change to the Indiana Code
provision governing the prepayment of consumer loans to incorporate
a cross reference to the Indiana Code provision setting forth the
authorized nonrefundable prepaid finance charge for supervised loans.
(Current law references only the authorized nonrefundable prepaid
finance charge for consumer loans other than supervised loans.)
Provides that under certain circumstances, a lender may contract for
and receive a nonrefundable prepaid finance charge of 3% of the loan
amount on a loan that is secured by an interest in land and is not made
under a revolving loan account. Provides that under certain
circumstances, a lender may contract for and receive a nonrefundable
prepaid finance charge of 3% of the line of credit on a loan that is
secured by an interest in land and is made under a revolving loan
account. Amends the Indiana Code provision governing audit
requirements for credit unions to provide that department of financial
institutions may establish by policy or rule accounting and auditing
standards necessary to define the audit requirements. Provides that: (1)
if a joint agreement of merger is approved by the department of
financial institutions, any credit union whose existence will terminate
as a result of the merger shall submit the joint agreement to a vote of
its shareholders as directed by the resolution of the board of directors;
and (2) a majority of shareholders voting may approve the joint
agreement.
ES 464—LS 6738/DI 101ES 464—LS 6738/DI 101 March 20, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in  this  style  type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
ENGROSSED
SENATE BILL No. 464
A BILL FOR AN ACT to amend the Indiana Code concerning
financial institutions.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 24-4.4-1-102, AS AMENDED BY P.L.30-2024,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 102. (1) This article shall be liberally construed
4 and applied to promote its underlying purposes and policies.
5 (2) The underlying purposes and policies of this article are:
6 (a) to permit and encourage the development of fair and
7 economically sound first lien mortgage lending practices; and
8 (b) to conform the regulation of first lien mortgage lending
9 practices to applicable state and federal laws, rules, regulations,
10 policies, and guidance.
11 (3) A reference to a requirement imposed by this article includes
12 reference to a related rule of the department adopted under this article.
13 (4) A reference to a federal law in this article is a reference to the
14 law as in effect December 31, 2023. 2024.
15 SECTION 2. IC 24-4.5-1-102, AS AMENDED BY P.L.30-2024,
16 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2025]: Sec. 102. (1) This article shall be liberally construed
ES 464—LS 6738/DI 101 2
1 and applied to promote its underlying purposes and policies.
2 (2) The underlying purposes and policies of this article are:
3 (a) to simplify, clarify, and modernize the law governing retail
4 installment sales, consumer credit, small loans, and usury;
5 (b) to provide rate ceilings to assure an adequate supply of credit
6 to consumers;
7 (c) to further consumer understanding of the terms of credit
8 transactions and to foster competition among suppliers of
9 consumer credit so that consumers may obtain credit at
10 reasonable cost;
11 (d) to protect consumer buyers, lessees, and borrowers against
12 unfair practices by some suppliers of consumer credit, having due
13 regard for the interests of legitimate and scrupulous creditors;
14 (e) to permit and encourage the development of fair and
15 economically sound consumer credit practices;
16 (f) to conform the regulation of consumer credit transactions to
17 the policies of the Consumer Credit Protection Act (15 U.S.C.
18 1601 et seq.) and to applicable state and federal laws, rules,
19 regulations, policies, and guidance; and
20 (g) to make uniform the law, including administrative rules,
21 among the various jurisdictions.
22 (3) A reference to a requirement imposed by this article includes
23 reference to a related rule or guidance of the department adopted
24 pursuant to this article.
25 (4) A reference to a federal law in this article is a reference to the
26 law as in effect December 31, 2023. 2024.
27 (5) This article applies to a transaction if the director determines
28 that the transaction:
29 (a) is in substance a disguised consumer credit transaction; or
30 (b) involves the application of subterfuge for the purpose of
31 avoiding this article.
32 A determination by the director under this subsection must be in
33 writing and shall be delivered to all parties to the transaction.
34 IC 4-21.5-3 applies to a determination made under this subsection.
35 (6) The authority of this article remains in effect, whether a licensee,
36 an individual, or a person subject to this article acts or claims to act
37 under any licensing or registration law of this state, or claims to act
38 without such authority.
39 (7) A violation of a state or federal law, regulation, or rule
40 applicable to consumer credit transactions is a violation of this article.
41 (8) The department may enforce penalty provisions set forth in 15
42 U.S.C. 1640 for violations of disclosure requirements applicable to
ES 464—LS 6738/DI 101 3
1 mortgage transactions.
2 SECTION 3. IC 24-4.5-3-107, AS AMENDED BY P.L.145-2008,
3 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2025]: Sec. 107. Definitions: "Lender"; "Precomputed";
5 "Principal" ) (1) Except as otherwise provided, "lender" means a
6 person regularly engaged in making consumer loans. The term includes
7 an assignee of the lender's right to payment but use of the term does not
8 in itself impose on an assignee any obligation of the lender with respect
9 to events occurring before the assignment.
10 (2) A loan, refinancing, or consolidation is "precomputed" if the
11 debt is expressed as a sum comprising the principal and the amount of
12 the loan finance charge computed in advance.
13 (3) "Principal" of a loan means the total of:
14 (a) the net amount paid to, receivable by, or paid or payable for
15 the account of the debtor;
16 (b) the amount of any discount excluded from the loan finance
17 charge (subsection (2) of IC 24-4.5-3-109); and
18 (c) to the extent that payment is deferred:
19 (i) amounts actually paid or to be paid by the lender for
20 registration, certificate of title, or license fees if not included
21 in (a); and
22 (ii) additional charges permitted by this chapter
23 (IC 24-4.5-3-202).
24 The term does not include any loan proceeds held as security for
25 the loan.
26 SECTION 4. IC 24-4.5-3-201, AS AMENDED BY P.L.29-2022,
27 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2025]: Sec. 201. Loan Finance Charge for Consumer Loans
29 other than Supervised Loans—(1) This section does not apply to a
30 supervised loan (as defined in section 501 of this chapter). Except as
31 provided in subsections (7) and (9), with respect to a consumer loan,
32 a lender may contract for a loan finance charge, calculated according
33 to the actuarial method, not exceeding twenty-five percent (25%) per
34 year on the unpaid balances of the principal (as defined in section
35 107(3) of this chapter).
36 (2) In the case of a loan agreement entered into before July 1, 2020,
37 this section does not limit or restrict the manner of contracting for the
38 loan finance charge, whether by way of add-on, discount, or otherwise,
39 so long as the rate of the loan finance charge does not exceed that
40 permitted by this section. If the loan is precomputed:
41 (a) the loan finance charge may be calculated on the assumption
42 that all scheduled payments will be made when due; and
ES 464—LS 6738/DI 101 4
1 (b) the effect of prepayment is governed by the provisions on
2 rebate upon prepayment in section 210 of this chapter.
3 (3) The following apply to a loan agreement for a consumer loan (or
4 for the refinancing or consolidation of a consumer loan) that is entered
5 into after June 30, 2020:
6 (a) The consumer loan is subject to this section, including the
7 limitations set forth in:
8 (i) subsection (1) with respect to the loan finance charge; and
9 (ii) subsection (9)(b) with respect to the amount of the
10 authorized nonrefundable prepaid finance charge, in the case
11 of a consumer loan that is not secured by an interest in land.
12 (b) The loan finance charge authorized by this section must be:
13 (i) contracted for between the lender and the debtor; and
14 (ii) calculated by applying a rate not exceeding the rate set
15 forth in subsection (1) to unpaid balances of the principal (as
16 defined in section 107(3) of this chapter).
17 (c) A loan agreement for a precomputed consumer loan is
18 prohibited.
19 (d) Subject to subsection (12), in addition to the loan finance
20 charge authorized by subsection (1) and to any other fees
21 permitted by this chapter, and not subject to the twenty-five
22 percent (25%) rate set forth in subsection (1), the lender may
23 contract for and receive as a condition for, or an incident to, the
24 extension of credit a nonrefundable prepaid finance charge under
25 subsection (9), whether the charge is:
26 (i) paid separately in cash or by check before or at
27 consummation; or
28 (ii) withheld from the proceeds of the consumer loan.
29 (4) For the purposes of this section, the term of a loan commences
30 with the date the loan is made. Differences in the lengths of months are
31 disregarded, and a day may be counted as one-thirtieth (1/30) of a
32 month. Subject to classifications and differentiations the lender may
33 reasonably establish, a part of a month in excess of fifteen (15) days
34 may be treated as a full month if periods of fifteen (15) days or less are
35 disregarded and if that procedure is not consistently used to obtain a
36 greater yield than would otherwise be permitted. For purposes of
37 computing average daily balances, the creditor may elect to treat all
38 months as consisting of thirty (30) days.
39 (5) With respect to a consumer loan made pursuant to a revolving
40 loan account:
41 (a) the loan finance charge shall be deemed not to exceed the
42 maximum annual percentage rate if the loan finance charge
ES 464—LS 6738/DI 101 5
1 contracted for and received does not exceed a charge in each
2 monthly billing cycle which is two and eighty-three thousandths
3 percent (2.083%) of an amount not greater than:
4 (i) the average daily balance of the debt;
5 (ii) the unpaid balance of the debt on the same day of the
6 billing cycle; or
7 (iii) subject to subsection (6), the median amount within a
8 specified range within which the average daily balance or the
9 unpaid balance of the debt, on the same day of the billing
10 cycle, is included; for the purposes of this clause and clause
11 (ii), a variation of not more than four (4) days from month to
12 month is "the same day of the billing cycle";
13 (b) if the billing cycle is not monthly, the loan finance charge
14 shall be deemed not to exceed the maximum annual percentage
15 rate if the loan finance charge contracted for and received does
16 not exceed a percentage which bears the same relation to
17 one-twelfth (1/12) the maximum annual percentage rate as the
18 number of days in the billing cycle bears to thirty (30); and
19 (c) notwithstanding subsection (1), if there is an unpaid balance
20 on the date as of which the loan finance charge is applied, the
21 lender may contract for and receive a charge not exceeding fifty
22 cents ($0.50) if the billing cycle is monthly or longer, or the pro
23 rata part of fifty cents ($0.50) which bears the same relation to
24 fifty cents ($0.50) as the number of days in the billing cycle bears
25 to thirty (30) if the billing cycle is shorter than monthly, but no
26 charge may be made pursuant to this subdivision if the lender has
27 made an annual charge for the same period as permitted by the
28 provisions on additional charges in section 202(1)(c) of this
29 chapter.
30 (6) Subject to classifications and differentiations the lender may
31 reasonably establish, the lender may make the same loan finance
32 charge on all amounts financed within a specified range. A loan finance
33 charge does not violate subsection (1) if:
34 (a) when applied to the median amount within each range, it does
35 not exceed the maximum permitted by subsection (1); and
36 (b) when applied to the lowest amount within each range, it does
37 not produce a rate of loan finance charge exceeding the rate
38 calculated according to subdivision (a) by more than eight percent
39 (8%) of the rate calculated according to subdivision (a).
40 (7) With respect to a consumer loan not made pursuant to a
41 revolving loan account, the lender may contract for and receive a
42 minimum loan finance charge of not more than thirty dollars ($30). The
ES 464—LS 6738/DI 101 6
1 minimum loan finance charge allowed under this subsection may be
2 imposed only if the lender does not contract for or receive a
3 nonrefundable prepaid finance charge under subsection (9) and:
4 (a) the debtor prepays in full a consumer loan, refinancing, or
5 consolidation, regardless of whether the loan, refinancing, or
6 consolidation is precomputed;
7 (b) the loan, refinancing, or consolidation prepaid by the debtor
8 is subject to a loan finance charge that:
9 (i) is contracted for by the parties; and
10 (ii) does not exceed the rate prescribed in subsection (1); and
11 (c) the loan finance charge earned at the time of prepayment is
12 less than the minimum loan finance charge contracted for under
13 this subsection.
14 (8) The amount of thirty dollars ($30) in subsection (7) is subject to
15 change under the provisions on adjustment of dollar amounts
16 (IC 24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), the
17 Reference Base Index to be used under this subsection is the Index for
18 October 1992.
19 (9) Except as provided in subsection (7), and subject to subsection
20 (12), in addition to the loan finance charge authorized by subsection (1)
21 and to any other charges and fees permitted by this chapter, a lender
22 may contract for and receive a nonrefundable prepaid finance charge
23 of not more than the following:
24 (a) In the case of a consumer loan that is secured by an interest in
25 land and that:
26 (i) is not made under a revolving loan account, two percent
27 (2%) three percent (3%) of the loan amount; or
28 (ii) is made under a revolving loan account, two percent (2%)
29 three percent (3%) of the line of credit.
30 (b) In the case of consumer loan that is not secured by an interest
31 in land, fifty dollars ($50) if the loan agreement is entered into
32 before July 1, 2020. If the loan agreement is entered into after
33 June 30, 2020, not more than the following:
34 (i) Seventy-five dollars ($75), in the case of a loan agreement
35 for a principal amount which is two thousand dollars ($2,000)
36 or less.
37 (ii) One hundred fifty dollars ($150) in the case of a loan
38 agreement for a principal amount which is more than two
39 thousand dollars ($2,000) but does not exceed four thousand
40 dollars ($4,000).
41 (iii) Two hundred dollars ($200) in the case of a loan
42 agreement for a principal amount which is more than four
ES 464—LS 6738/DI 101 7
1 thousand dollars ($4,000).
2 The amounts in this subsection are not subject to change under
3 IC 24-4.5-1-106.
4 (10) The nonrefundable prepaid finance charge provided for in
5 subsection (9) is not subject to refund or rebate. However, for any loan
6 entered into after June 30, 2020, any amount charged by the lender,
7 other than by a lender that is a depository institution (as defined in
8 IC 24-4.5-1-301.5(12)), under subsection (9) that exceeds the
9 applicable amount permitted by subsection (9)(b) constitutes a
10 violation of this article under IC 24-4.5-6-107.5(l) and is subject to
11 refund. Any amount charged by a depository institution (as defined in
12 IC 24-4.5-1-301.5(12)) under subsection (9) that exceeds the applicable
13 amount set forth in subsection (9)(b) is subject to refund.
14 (11) If the director determines that a lender's accrual method of
15 accounting as applied to a consumer loan under this section involves
16 the application of subterfuge for the purpose of circumventing this
17 chapter, the director may conform the loan finance charge and fees for
18 the transaction to the limitations set forth in this section and may
19 require a refund of overcharges under IC 24-4.5-6-106(2)(a). A
20 determination by the director under this subsection:
21 (a) must be in writing;
22 (b) shall be delivered to all parties in the transaction; and
23 (c) is subject to IC 4-21.5-3.
24 (12) At the time of consummation of a consumer loan:
25 (a) the loan finance charge authorized by subsection (1); and
26 (b) the nonrefundable prepaid finance charge authorized by
27 subsection (9) (including any amount charged by a depository
28 institution (as defined in IC 24-4.5-1-301.5(12)) that exceeds the
29 applicable amount set forth in subsection (9)(b));
30 are subject to IC 35-45-7 and, when combined, may not exceed the rate
31 set forth in IC 35-45-7-2.
32 (13) Notwithstanding subsections (9) and (10), in the case of a
33 consumer loan that is not secured by an interest in land, if a lender
34 retains any part of a nonrefundable prepaid finance charge charged on
35 a loan that is paid in full by a new loan from the same lender, the
36 following apply:
37 (a) If the loan is paid in full by the new loan within three (3)
38 months after the date of the prior loan, the lender may not charge
39 a nonrefundable prepaid finance charge on the new loan, or, in the
40 case of a revolving loan, on the increased credit line.
41 (b) The lender may not assess more than two (2) nonrefundable
42 prepaid finance charges in any twelve (12) month period.
ES 464—LS 6738/DI 101 8
1 (c) Subject to subdivisions (a) and (b), if a loan that is entered
2 into by a lender and a debtor before July 1, 2020, is paid in full by
3 a new loan from the same lender after June 30, 2020, the lender
4 may contract for and receive a nonrefundable prepaid finance
5 charge in the amount set forth in subsection (9)(b) for loan
6 agreements entered into after June 30, 2020.
7 (14) In the case of a consumer loan that is secured by an interest in
8 land, this section does not prohibit a lender from contracting for and
9 receiving a fee for preparing deeds, mortgages, reconveyances, and
10 similar documents under section 202(1)(d)(ii) of this chapter, in
11 addition to the nonrefundable prepaid finance charge provided for in
12 subsection (9).
13 SECTION 5. IC 24-4.5-3-209, AS AMENDED BY P.L.85-2020,
14 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 209. Right to Prepay - (1) Subject to the
16 provisions on rebate upon prepayment (section 210 of this chapter), the
17 debtor may prepay in full the unpaid balance of a consumer loan,
18 refinancing, or consolidation at any time without penalty. With respect
19 to a consumer loan that is primarily secured by an interest in land, a
20 lender may contract for a penalty for prepayment of the loan in full, not
21 to exceed two percent (2%) of any amount prepaid within sixty (60)
22 days of the date of the prepayment in full, after deducting all refunds
23 and rebates as of the date of the prepayment. However, the penalty may
24 not be imposed:
25 (a) if the loan is refinanced or consolidated with the same
26 creditor;
27 (b) for prepayment by proceeds of any insurance or acceleration
28 after default; or
29 (c) after three (3) years from the contract date.
30 For purposes of this section, the collection of the amount of any
31 conditionally waived closing costs (as allowed under section 202(d) of
32 this chapter) by a creditor, as stipulated in the loan agreement, at the
33 time of prepayment in full does not constitute a prepayment penalty
34 and is not subject to the limitations set forth in this subsection.
35 (2) At the time of prepayment of a consumer loan not subject to the
36 provisions of rebate upon prepayment (section 210 of this chapter), the
37 total finance charge, including the prepaid finance charge but
38 excluding the nonrefundable prepaid finance charge allowed under
39 section 201(9) or section 508(8) of this chapter, as applicable, may
40 not exceed the maximum charge allowed under this chapter for the
41 period the loan was in effect. For the purposes of determining
42 compliance with this subsection, the total finance charge does not
ES 464—LS 6738/DI 101 9
1 include the following:
2 (a) The nonrefundable prepaid finance charge allowed under
3 section 201(9) or section 508(8) of this chapter, as applicable.
4 (b) The debtor paid mortgage broker fee, if any, paid to a person
5 who does not control, is not controlled by, or is not under
6 common control with, the creditor holding the loan at the time a
7 consumer loan is prepaid.
8 (3) The creditor or mortgage servicer shall provide, in writing, an
9 accurate payoff amount for the consumer loan to the debtor within
10 seven (7) business days (excluding legal public holidays, Saturdays,
11 and Sundays) after the creditor or mortgage servicer receives the
12 debtor's written request for the accurate consumer loan payoff amount.
13 A payoff statement provided by a creditor or mortgage servicer under
14 this subsection must show the date the statement was prepared and
15 itemize the unpaid principal balance and each fee, charge, or other sum
16 included within the payoff amount. A creditor or mortgage servicer
17 who fails to provide the accurate consumer loan payoff amount is liable
18 for:
19 (a) one hundred dollars ($100) if an accurate consumer loan
20 payoff amount is not provided by the creditor or mortgage
21 servicer within seven (7) business days (excluding legal public
22 holidays, Saturdays, and Sundays) after the creditor or mortgage
23 servicer receives the debtor's first written request; and
24 (b) the greater of:
25 (i) one hundred dollars ($100); or
26 (ii) the loan finance charge that accrues on the loan from the
27 date the creditor or mortgage servicer receives the first written
28 request until the date on which the accurate consumer loan
29 payoff amount is provided;
30 if an accurate consumer loan payoff amount is not provided by the
31 creditor or mortgage servicer within seven (7) business days
32 (excluding legal public holidays, Saturdays, and Sundays) after
33 the creditor or mortgage servicer receives the debtor's second
34 written request, and the creditor or mortgage servicer failed to
35 comply with subdivision (a).
36 A liability under this subsection is an excess charge under
37 IC 24-4.5-5-202.
38 (4) As used in this subsection, "mortgage transaction" means a
39 consumer loan in which a mortgage or a land contract (or another
40 consensual security interest equivalent to a mortgage or a land contract)
41 that constitutes a lien is created or retained against land upon which
42 there is constructed or intended to be constructed a dwelling that is or
ES 464—LS 6738/DI 101 10
1 will be used by the debtor primarily for personal, family, or household
2 purposes. This subsection applies to a mortgage transaction with
3 respect to which any installment or minimum payment due is
4 delinquent for at least sixty (60) days. The creditor, servicer, or the
5 creditor's agent shall acknowledge a written offer made in connection
6 with a proposed short sale not later than five (5) business days
7 (excluding legal public holidays, Saturdays, and Sundays) after the date
8 of the offer if the offer complies with the requirements for a qualified
9 written request set forth in 12 U.S.C. 2605(e)(1)(B). The creditor,
10 servicer, or creditor's agent is required to acknowledge a written offer
11 made in connection with a proposed short sale from a third party acting
12 on behalf of the debtor only if the debtor has provided written
13 authorization for the creditor, servicer, or creditor's agent to do so. Not
14 later than thirty (30) business days (excluding legal public holidays,
15 Saturdays, and Sundays) after receipt of an offer under this subsection,
16 the creditor, servicer, or creditor's agent shall respond to the offer with
17 an acceptance or a rejection of the offer. The thirty (30) day period
18 described in this subsection may be extended for not more than fifteen
19 (15) business days (excluding legal public holidays, Saturdays, and
20 Sundays) if, before the end of the thirty (30) day period, the creditor,
21 the servicer, or the creditor's agent notifies the debtor of the extension
22 and the reason the extension is needed. Payment accepted by a creditor,
23 servicer, or creditor's agent in connection with a short sale constitutes
24 payment in full satisfaction of the mortgage transaction unless the
25 creditor, servicer, or creditor's agent obtains:
26 (a) the following statement: "The debtor remains liable for any
27 amount still owed under the mortgage transaction."; or
28 (b) a statement substantially similar to the statement set forth in
29 subdivision (a);
30 acknowledged by the initials or signature of the debtor, on or before the
31 date on which the short sale payment is accepted. As used in this
32 subsection, "short sale" means a transaction in which the property that
33 is the subject of a mortgage transaction is sold for an amount that is
34 less than the amount of the debtor's outstanding obligation under the
35 mortgage transaction. A creditor or mortgage servicer that fails to
36 respond to an offer within the time prescribed by this subsection is
37 liable in accordance with 12 U.S.C. 2605(f) in any action brought
38 under that section.
39 (5) This section is not intended to provide the owner of real estate
40 subject to the issuance of process under a judgment or decree of
41 foreclosure any protection or defense against a deficiency judgment for
42 purposes of the borrower protections from liability that must be
ES 464—LS 6738/DI 101 11
1 disclosed under 12 CFR 1026.38(p)(3) on the form required by 12 CFR
2 1026.38 ("Closing Disclosures" form under the Amendments to the
3 2013 Integrated Mortgage Disclosures Rule Under the Real Estate
4 Settlement Procedures Act (Regulation X) and the Truth In Lending
5 Act (Regulation Z) and the 2013 Loan Originator Rule Under the Truth
6 in Lending Act (Regulation Z)).
7 SECTION 6. IC 24-5-0.5-2, AS AMENDED BY P.L.280-2019,
8 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2025]: Sec. 2. (a) As used in this chapter:
10 (1) "Consumer transaction" means a sale, lease, assignment,
11 award by chance, or other disposition of an item of personal
12 property, real property, a service, or an intangible, except
13 securities and policies or contracts of insurance issued by
14 corporations authorized to transact an insurance business under
15 the laws of the state of Indiana, with or without an extension of
16 credit, to a person for purposes that are primarily personal,
17 familial, charitable, agricultural, or household, or a solicitation to
18 supply any of these things. However, the term includes the
19 following:
20 (A) A transfer of structured settlement payment rights under
21 IC 34-50-2.
22 (B) An unsolicited advertisement sent to a person by telephone
23 facsimile machine offering a sale, lease, assignment, award by
24 chance, or other disposition of an item of personal property,
25 real property, a service, or an intangible.
26 (C) The collection of or attempt to collect a debt by a debt
27 collector.
28 (D) Conduct that is described in section 3(a) of this chapter
29 and that arises from, occurs in connection with, or
30 otherwise involves a transaction between a supplier and a
31 state or local law enforcement agency within Indiana.
32 (2) "Person" means an individual, corporation, the state of Indiana
33 or its subdivisions or agencies, business trust, estate, trust,
34 partnership, association, nonprofit corporation or organization, or
35 cooperative or any other legal entity.
36 (3) "Supplier" means the following:
37 (A) A seller, lessor, assignor, or other person who regularly
38 engages in or solicits consumer transactions, including
39 soliciting a consumer transaction by using a telephone
40 facsimile machine to transmit an unsolicited advertisement.
41 The term includes a manufacturer, a wholesaler, or a retailer,
42 or, in a consumer transaction described in subdivision
ES 464—LS 6738/DI 101 12
1 (1)(D), any entity that provides a product or service to a
2 state or local law enforcement agency within Indiana,
3 whether or not the person deals directly with the consumer.
4 (B) A debt collector.
5 (4) "Subject of a consumer transaction" means the personal
6 property, real property, services, or intangibles offered or
7 furnished in a consumer transaction.
8 (5) "Cure" as applied to a deceptive act, means either:
9 (A) to offer in writing to adjust or modify the consumer
10 transaction to which the act relates to conform to the
11 reasonable expectations of the consumer generated by such
12 deceptive act and to perform such offer if accepted by the
13 consumer; or
14 (B) to offer in writing to rescind such consumer transaction
15 and to perform such offer if accepted by the consumer.
16 The term includes an offer in writing of one (1) or more items of
17 value, including monetary compensation, that the supplier
18 delivers to a consumer or a representative of the consumer if
19 accepted by the consumer.
20 (6) "Offer to cure" as applied to a deceptive act is a cure that:
21 (A) is reasonably calculated to remedy a loss claimed by the
22 consumer; and
23 (B) includes a minimum additional amount that is the greater
24 of:
25 (i) ten percent (10%) of the value of the remedy under
26 clause (A), but not more than four thousand dollars
27 ($4,000); or
28 (ii) five hundred dollars ($500);
29 as compensation for attorney's fees, expenses, and other costs
30 that a consumer may incur in relation to the deceptive act.
31 (7) "Uncured deceptive act" means a deceptive act:
32 (A) with respect to which a consumer who has been damaged
33 by such act has given notice to the supplier under section 5(a)
34 of this chapter; and
35 (B) either:
36 (i) no offer to cure has been made to such consumer within
37 thirty (30) days after such notice; or
38 (ii) the act has not been cured as to such consumer within a
39 reasonable time after the consumer's acceptance of the offer
40 to cure.
41 (8) "Incurable deceptive act" means a deceptive act done by a
42 supplier as part of a scheme, artifice, or device with intent to
ES 464—LS 6738/DI 101 13
1 defraud or mislead. The term includes a failure of a transferee of
2 structured settlement payment rights to timely provide a true and
3 complete disclosure statement to a payee as provided under
4 IC 34-50-2 in connection with a direct or indirect transfer of
5 structured settlement payment rights.
6 (9) "Senior consumer" means an individual who is at least sixty
7 (60) years of age.
8 (10) "Telephone facsimile machine" means equipment that has
9 the capacity to transcribe text or images, or both, from:
10 (A) paper into an electronic signal and to transmit that signal
11 over a regular telephone line; or
12 (B) an electronic signal received over a regular telephone line
13 onto paper.
14 (11) "Unsolicited advertisement" means material advertising the
15 commercial availability or quality of:
16 (A) property;
17 (B) goods; or
18 (C) services;
19 that is transmitted to a person without the person's prior express
20 invitation or permission, in writing or otherwise.
21 (12) "Debt" has the meaning set forth in 15 U.S.C. 1692(a)(5).
22 (13) "Debt collector" has the meaning set forth in 15 U.S.C.
23 1692(a)(6). The term does not include a person admitted to the
24 practice of law in Indiana if the person is acting within the course
25 and scope of the person's practice as an attorney. The term
26 includes a debt buyer (as defined in IC 24-5-15.5).
27 (b) As used in section 3(b)(15) and 3(b)(16) of this chapter:
28 (1) "Directory assistance" means the disclosure of telephone
29 number information in connection with an identified telephone
30 service subscriber by means of a live operator or automated
31 service.
32 (2) "Local telephone directory" refers to a telephone classified
33 advertising directory or the business section of a telephone
34 directory that is distributed by a telephone company or directory
35 publisher to subscribers located in the local exchanges contained
36 in the directory. The term includes a directory that includes
37 listings of more than one (1) telephone company.
38 (3) "Local telephone number" refers to a telephone number that
39 has the three (3) number prefix used by the provider of telephone
40 service for telephones physically located within the area covered
41 by the local telephone directory in which the number is listed. The
42 term does not include long distance numbers or 800-, 888-, or
ES 464—LS 6738/DI 101 14
1 900- exchange numbers listed in a local telephone directory.
2 SECTION 7. IC 24-5-0.5-4, AS AMENDED BY P.L.118-2024,
3 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2025]: Sec. 4. (a) A person relying upon an uncured or
5 incurable deceptive act may bring an action for the damages actually
6 suffered as a consumer as a result of the deceptive act or five hundred
7 dollars ($500), whichever is greater. The court may increase damages
8 for a willful deceptive act in an amount that does not exceed the greater
9 of:
10 (1) three (3) times the actual damages of the consumer suffering
11 the loss; or
12 (2) one thousand dollars ($1,000).
13 Except as provided in subsection (k), the court may award reasonable
14 attorney's fees to the party that prevails in an action under this
15 subsection. This subsection does not apply to a consumer transaction
16 in real property, including a claim or action involving a construction
17 defect (as defined in IC 32-27-3-1(5)) brought against a construction
18 professional (as defined in IC 32-27-3-1(4)), except for purchases of
19 time shares and camping club memberships. This subsection does not
20 apply with respect to a deceptive act described in section 3(b)(20) of
21 this chapter. This subsection also does not apply to a violation of
22 IC 24-4.7, IC 24-5-12, IC 24-5-14, or IC 24-5-14.5. Actual damages
23 awarded to a person under this section have priority over any civil
24 penalty imposed under this chapter.
25 (b) Any person who is entitled to bring an action under subsection
26 (a) on the person's own behalf against a supplier for damages for a
27 deceptive act may bring a class action against such supplier on behalf
28 of any class of persons of which that person is a member and which has
29 been damaged by such deceptive act, subject to and under the Indiana
30 Rules of Trial Procedure governing class actions, except as herein
31 expressly provided. Except as provided in subsection (k), the court may
32 award reasonable attorney's fees to the party that prevails in a class
33 action under this subsection, provided that such fee shall be determined
34 by the amount of time reasonably expended by the attorney and not by
35 the amount of the judgment, although the contingency of the fee may
36 be considered. Except in the case of an extension of time granted by the
37 attorney general under IC 24-10-2-2(b) in an action subject to IC 24-10,
38 any money or other property recovered in a class action under this
39 subsection which cannot, with due diligence, be restored to consumers
40 within one (1) year after the judgment becomes final shall be returned
41 to the party depositing the same. This subsection does not apply to a
42 consumer transaction in real property, except for purchases of time
ES 464—LS 6738/DI 101 15
1 shares and camping club memberships. This subsection does not apply
2 with respect to a deceptive act described in section 3(b)(20) of this
3 chapter. Actual damages awarded to a class have priority over any civil
4 penalty imposed under this chapter.
5 (c) The attorney general may bring an action to enjoin a deceptive
6 act, including a deceptive act described in section 3(b)(20) of this
7 chapter, notwithstanding subsections (a) and (b). However, the attorney
8 general may seek to enjoin patterns of incurable deceptive acts with
9 respect to consumer transactions in real property. In addition, the court
10 may:
11 (1) issue an injunction;
12 (2) order the supplier to make payment of the money unlawfully
13 received from the aggrieved consumers to be held in escrow for
14 distribution to aggrieved consumers;
15 (3) for a knowing violation against a senior consumer, increase
16 the amount of restitution ordered under subdivision (2) in any
17 amount up to three (3) times the amount of damages incurred or
18 value of property or assets lost;
19 (4) order the supplier to pay to the state the reasonable costs of
20 the attorney general's investigation and prosecution related to the
21 action;
22 (5) provide for the appointment of a receiver; and
23 (6) order the department of state revenue to suspend the supplier's
24 registered retail merchant certificate, subject to the requirements
25 and prohibitions contained in IC 6-2.5-8-7(a)(5), if the court finds
26 that a violation of this chapter involved the sale or solicited sale
27 of a synthetic drug (as defined in IC 35-31.5-2-321), a synthetic
28 drug lookalike substance (as defined in IC 35-31.5-2-321.5
29 (repealed)) (before July 1, 2019), a controlled substance analog
30 (as defined in IC 35-48-1-9.3), or a substance represented to be a
31 controlled substance (as described in IC 35-48-4-4.6); and
32 (7) grant relief in an action that arises from, or otherwise
33 involves, a consumer transaction described in section
34 2(a)(1)(D) of this chapter only when the action is brought and
35 enforced by the attorney general under this subsection.
36 (d) In an action under subsection (a), (b), or (c), the court may void
37 or limit the application of contracts or clauses resulting from deceptive
38 acts and order restitution to be paid to aggrieved consumers.
39 (e) In any action under subsection (a) or (b), upon the filing of the
40 complaint or on the appearance of any defendant, claimant, or any
41 other party, or at any later time, the trial court, the supreme court, or the
42 court of appeals may require the plaintiff, defendant, claimant, or any
ES 464—LS 6738/DI 101 16
1 other party or parties to give security, or additional security, in such
2 sum as the court shall direct to pay all costs, expenses, and
3 disbursements that shall be awarded against that party or which that
4 party may be directed to pay by any interlocutory order by the final
5 judgment or on appeal.
6 (f) Any person who violates the terms of an injunction issued under
7 subsection (c) shall forfeit and pay to the state a civil penalty of not
8 more than fifteen thousand dollars ($15,000) per violation. For the
9 purposes of this section, the court issuing an injunction shall retain
10 jurisdiction, the cause shall be continued, and the attorney general
11 acting in the name of the state may petition for recovery of civil
12 penalties. Whenever the court determines that an injunction issued
13 under subsection (c) has been violated, the court shall award
14 reasonable costs to the state.
15 (g) If a court finds any person has knowingly violated section 3 or
16 10 of this chapter, other than section 3(b)(19), 3(b)(20), or 3(b)(40) of
17 this chapter, the attorney general, in an action pursuant to subsection
18 (c), may recover from the person on behalf of the state a civil penalty
19 of a fine not exceeding five thousand dollars ($5,000) per violation.
20 (h) If a court finds that a person has violated section 3(b)(19) of this
21 chapter, the attorney general, in an action under subsection (c), may
22 recover from the person on behalf of the state a civil penalty as follows:
23 (1) For a knowing or intentional violation, one thousand five
24 hundred dollars ($1,500).
25 (2) For a violation other than a knowing or intentional violation,
26 five hundred dollars ($500).
27 A civil penalty recovered under this subsection shall be deposited in
28 the consumer protection division telephone solicitation fund
29 established by IC 24-4.7-3-6 to be used for the administration and
30 enforcement of section 3(b)(19) of this chapter.
31 (i) A senior consumer relying upon an uncured or incurable
32 deceptive act, including an act related to hypnotism, may bring an
33 action to recover treble damages, if appropriate.
34 (j) An offer to cure is:
35 (1) not admissible as evidence in a proceeding initiated under this
36 section unless the offer to cure is delivered by a supplier to the
37 consumer or a representative of the consumer before the supplier
38 files the supplier's initial response to a complaint; and
39 (2) only admissible as evidence in a proceeding initiated under
40 this section to prove that a supplier is not liable for attorney's fees
41 under subsection (k).
42 If the offer to cure is timely delivered by the supplier, the supplier may
ES 464—LS 6738/DI 101 17
1 submit the offer to cure as evidence to prove in the proceeding in
2 accordance with the Indiana Rules of Trial Procedure that the supplier
3 made an offer to cure.
4 (k) A supplier may not be held liable for the attorney's fees and
5 court costs of the consumer that are incurred following the timely
6 delivery of an offer to cure as described in subsection (j) unless the
7 actual damages awarded, not including attorney's fees and costs, exceed
8 the value of the offer to cure.
9 (l) If a court finds that a person has knowingly violated section
10 3(b)(20) of this chapter, the attorney general, in an action under
11 subsection (c), may recover from the person on behalf of the state a
12 civil penalty not exceeding one thousand dollars ($1,000) per
13 consumer. In determining the amount of the civil penalty in any action
14 by the attorney general under this subsection, the court shall consider,
15 among other relevant factors, the frequency and persistence of
16 noncompliance by the debt collector, the nature of the noncompliance,
17 and the extent to which the noncompliance was intentional. A person
18 may not be held liable in any action by the attorney general for a
19 violation of section 3(b)(20) of this chapter if the person shows by a
20 preponderance of evidence that the violation was not intentional and
21 resulted from a bona fide error, notwithstanding the maintenance of
22 procedures reasonably adapted to avoid the error. A person may not be
23 held liable in any action for a violation of this chapter for contacting a
24 person other than the debtor, if the contact is made in compliance with
25 the Fair Debt Collection Practices Act.
26 (m) If a court finds that a person has knowingly or intentionally
27 violated section 3(b)(40) of this chapter, the attorney general, in an
28 action under subsection (c), may recover from the person on behalf of
29 the state a civil penalty in accordance with IC 24-5-14.5-12(b). As
30 specified in IC 24-5-14.5-12(b), a civil penalty recovered under
31 IC 24-5-14.5-12(b) shall be deposited in the consumer protection
32 division telephone solicitation fund established by IC 24-4.7-3-6 to be
33 used for the administration and enforcement of IC 24-5-14.5. In
34 addition to the recovery of a civil penalty in accordance with
35 IC 24-5-14.5-12(b), the attorney general may also recover reasonable
36 attorney fees and court costs from the person on behalf of the state.
37 Those funds shall also be deposited in the consumer protection division
38 telephone solicitation fund established by IC 24-4.7-3-6.
39 SECTION 8. IC 28-7-1-18, AS AMENDED BY P.L.186-2015,
40 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2025]: Sec. 18. (a) The supervisory committee shall cause the
42 share and loan accounts of the members to be verified with the records
ES 464—LS 6738/DI 101 18
1 of the treasurer at least each biennium. A verification under this
2 subsection shall be performed using one (1) of the following methods:
3 (1) A verification of one hundred percent (100%) of the share and
4 loan accounts of all members.
5 (2) A verification of share and loan accounts in accordance with
6 the requirements of the National Credit Union Administration set
7 forth in 12 CFR 715.8.
8 (b) The supervisory committee shall supervise the acts of the board
9 of directors, credit committee, and officers.
10 (c) By a majority vote, the supervisory committee may call a
11 meeting of the shareholders to consider any violation of this chapter,
12 or of the bylaws, or of any practice of the credit union which, in the
13 opinion of the committee is unsafe and unauthorized.
14 (d) The supervisory committee shall fill vacancies in its own
15 number until the next annual meeting of the members.
16 (e) At the close of the audit period, The supervisory committee of
17 each credit union shall one (1) time each calendar year make or
18 cause to be made a thorough audit of the credit union for each audit
19 period and shall make a full report to the directors. The audit report
20 shall be issued not later than one hundred twenty (120) days following
21 the close of the audit period. Tapes, work papers, schedules, and
22 evidence of verification of accounts shall be retained until the next
23 examination by the department. and shall provide a full report of the
24 audit to the credit union's directors. If a credit union has assets of
25 at least five million dollars ($5,000,000), the audit required by this
26 subsection must be performed by an outside certified public
27 accountant. A credit union's board of directors shall submit the
28 audit report and a complete statement of the condition of the credit
29 union to the department. The department may require additional
30 information in connection with an audit performed under this
31 subsection. The department may require at any time an audit to be
32 performed upon any credit union by an outside certified public
33 accountant if the department questions the safety and soundness of
34 the credit union. A summary of the any audit report or statement of
35 condition prepared under this subsection shall be read at the annual
36 meeting of the credit union and shall be filed and preserved with the
37 records of the credit union. The department may establish by policy
38 or rule the accounting and auditing standards necessary to define
39 the audit requirements set forth in this section.
40 (f) A credit union with assets of at least five million dollars
41 ($5,000,000) shall have an annual audit performed by an outside
42 professional accounting firm. The department may require a
ES 464—LS 6738/DI 101 19
1 professional outside audit to be performed upon any credit union if the
2 department questions the safety and soundness of the credit union.
3 (g) (f) Minutes of every meeting of the supervisory committee shall
4 be kept and maintained.
5 SECTION 9. IC 28-7-1-33, AS AMENDED BY P.L.73-2016,
6 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2025]: Sec. 33. (a) Except as provided in section 33.1 of this
8 chapter, any two (2) or more credit unions may, with the approval of
9 the department, merge. This section authorizes the merger of a credit
10 union organized under this chapter with a credit union organized under
11 any other law.
12 (b) The board of directors of each credit union participating in the
13 merger must by majority vote approve a joint agreement of merger.
14 (c) After the resolutions approving a joint agreement of merger have
15 been adopted by the board of directors of each credit union, the credit
16 unions shall submit the resolutions and joint agreement to the
17 department for approval. The department may, in the department's
18 discretion, approve or disapprove the resolution and joint agreement.
19 In deciding whether to approve or disapprove the resolution and joint
20 agreement under this section, the department shall consider the
21 following factors:
22 (1) Whether the surviving credit union resulting from the
23 proposed transaction will be operated in a safe, sound, and
24 prudent manner.
25 (2) Whether the financial condition of any credit union subject to
26 the proposed transaction will jeopardize the financial stability of
27 any other credit unions subject to the proposed transaction.
28 (3) Whether the proposed transaction will result in a credit union
29 that has inadequate capital, unsatisfactory management, or poor
30 earnings prospects.
31 (4) Whether the proposed transaction, in the department's
32 judgment and considering the available information under the
33 prevailing circumstances, will result in an institution that is more
34 favorable to the stakeholders than if the entities were to remain
35 separate.
36 (5) Whether the management or other principals of the credit
37 union that will result from the proposed transaction are qualified
38 by character and financial responsibility to control and operate in
39 a legal and proper manner the resulting credit union.
40 (6) Whether the credit unions subject to the proposed transaction
41 furnish all the information the department requires in reaching the
42 department's decision.
ES 464—LS 6738/DI 101 20
1 (d) If the joint agreement is approved by the department, any credit
2 union whose existence will terminate as a result of the merger shall
3 submit the joint agreement to a vote of its shareholders at the meeting
4 as directed by the resolution of the board of directors. A majority of the
5 shareholders present at the meeting voting may approve the joint
6 agreement. However, the department may permit the merger to become
7 effective without the affirmative vote of the membership of a credit
8 union if that credit union is in danger of insolvency or if the qualified
9 group or groups associated with the credit union either have ceased or
10 will soon cease to exist.
11 (e) After approval of the joint agreement by the shareholders of the
12 merging credit unions, each credit union shall execute in triplicate
13 articles of merger, on forms furnished by the department, which shall
14 set forth the following:
15 (1) The time and place of the meeting of the board of directors at
16 which the plan was approved.
17 (2) The vote by which the plan was approved by the board.
18 (3) A copy of the resolution or other action by which the plan was
19 agreed upon.
20 (4) The time and place of the meeting of the members at which
21 the plan was approved.
22 (5) The vote by which the plan was approved by the members.
23 (f) The articles, joint agreement, and resolutions shall be delivered
24 to the department for certification, which shall be evidenced in the
25 manner prescribed in IC 28-12-5, and shall be presented to the
26 secretary of state for filing. The secretary of state shall file one (1) copy
27 of the articles of merger and shall issue a certificate of merger and two
28 (2) copies of the articles of merger to the surviving credit union. The
29 date on which the secretary of state issues the certificate of merger is
30 the effective date of the merger.
31 (g) The articles of merger shall be filed with the county recorder of
32 the county in which the principal office of the surviving credit union is
33 located.
34 SECTION 10. IC 28-10-1-1, AS AMENDED BY P.L.30-2024,
35 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2025]: Sec. 1. A reference to a federal law or federal
37 regulation in this title is a reference to the law or regulation as in effect
38 December 31, 2023. 2024.
ES 464—LS 6738/DI 101 21
COMMITTEE REPORT
Mr. President: The Senate Committee on Insurance and Financial
Institutions, to which was referred Senate Bill No. 464, has had the
same under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill DO PASS.
 (Reference is to SB 464 as introduced.)
           
BALDWIN, Chairperson
Committee Vote: Yeas 7, Nays 0
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Financial Institutions, to which
was referred Senate Bill 464, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 3, between lines 25 and 26, begin a new paragraph and insert:
"SECTION 4. IC 24-4.5-3-201, AS AMENDED BY P.L.29-2022,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 201. Loan Finance Charge for Consumer Loans
other than Supervised Loans—(1) This section does not apply to a
supervised loan (as defined in section 501 of this chapter). Except as
provided in subsections (7) and (9), with respect to a consumer loan,
a lender may contract for a loan finance charge, calculated according
to the actuarial method, not exceeding twenty-five percent (25%) per
year on the unpaid balances of the principal (as defined in section
107(3) of this chapter).
(2) In the case of a loan agreement entered into before July 1, 2020,
this section does not limit or restrict the manner of contracting for the
loan finance charge, whether by way of add-on, discount, or otherwise,
so long as the rate of the loan finance charge does not exceed that
permitted by this section. If the loan is precomputed:
(a) the loan finance charge may be calculated on the assumption
that all scheduled payments will be made when due; and
(b) the effect of prepayment is governed by the provisions on
rebate upon prepayment in section 210 of this chapter.
(3) The following apply to a loan agreement for a consumer loan (or
for the refinancing or consolidation of a consumer loan) that is entered
into after June 30, 2020:
ES 464—LS 6738/DI 101 22
(a) The consumer loan is subject to this section, including the
limitations set forth in:
(i) subsection (1) with respect to the loan finance charge; and
(ii) subsection (9)(b) with respect to the amount of the
authorized nonrefundable prepaid finance charge, in the case
of a consumer loan that is not secured by an interest in land.
(b) The loan finance charge authorized by this section must be:
(i) contracted for between the lender and the debtor; and
(ii) calculated by applying a rate not exceeding the rate set
forth in subsection (1) to unpaid balances of the principal (as
defined in section 107(3) of this chapter).
(c) A loan agreement for a precomputed consumer loan is
prohibited.
(d) Subject to subsection (12), in addition to the loan finance
charge authorized by subsection (1) and to any other fees
permitted by this chapter, and not subject to the twenty-five
percent (25%) rate set forth in subsection (1), the lender may
contract for and receive as a condition for, or an incident to, the
extension of credit a nonrefundable prepaid finance charge under
subsection (9), whether the charge is:
(i) paid separately in cash or by check before or at
consummation; or
(ii) withheld from the proceeds of the consumer loan.
(4) For the purposes of this section, the term of a loan commences
with the date the loan is made. Differences in the lengths of months are
disregarded, and a day may be counted as one-thirtieth (1/30) of a
month. Subject to classifications and differentiations the lender may
reasonably establish, a part of a month in excess of fifteen (15) days
may be treated as a full month if periods of fifteen (15) days or less are
disregarded and if that procedure is not consistently used to obtain a
greater yield than would otherwise be permitted. For purposes of
computing average daily balances, the creditor may elect to treat all
months as consisting of thirty (30) days.
(5) With respect to a consumer loan made pursuant to a revolving
loan account:
(a) the loan finance charge shall be deemed not to exceed the
maximum annual percentage rate if the loan finance charge
contracted for and received does not exceed a charge in each
monthly billing cycle which is two and eighty-three thousandths
percent (2.083%) of an amount not greater than:
(i) the average daily balance of the debt;
(ii) the unpaid balance of the debt on the same day of the
ES 464—LS 6738/DI 101 23
billing cycle; or
(iii) subject to subsection (6), the median amount within a
specified range within which the average daily balance or the
unpaid balance of the debt, on the same day of the billing
cycle, is included; for the purposes of this clause and clause
(ii), a variation of not more than four (4) days from month to
month is "the same day of the billing cycle";
(b) if the billing cycle is not monthly, the loan finance charge
shall be deemed not to exceed the maximum annual percentage
rate if the loan finance charge contracted for and received does
not exceed a percentage which bears the same relation to
one-twelfth (1/12) the maximum annual percentage rate as the
number of days in the billing cycle bears to thirty (30); and
(c) notwithstanding subsection (1), if there is an unpaid balance
on the date as of which the loan finance charge is applied, the
lender may contract for and receive a charge not exceeding fifty
cents ($0.50) if the billing cycle is monthly or longer, or the pro
rata part of fifty cents ($0.50) which bears the same relation to
fifty cents ($0.50) as the number of days in the billing cycle bears
to thirty (30) if the billing cycle is shorter than monthly, but no
charge may be made pursuant to this subdivision if the lender has
made an annual charge for the same period as permitted by the
provisions on additional charges in section 202(1)(c) of this
chapter.
(6) Subject to classifications and differentiations the lender may
reasonably establish, the lender may make the same loan finance
charge on all amounts financed within a specified range. A loan finance
charge does not violate subsection (1) if:
(a) when applied to the median amount within each range, it does
not exceed the maximum permitted by subsection (1); and
(b) when applied to the lowest amount within each range, it does
not produce a rate of loan finance charge exceeding the rate
calculated according to subdivision (a) by more than eight percent
(8%) of the rate calculated according to subdivision (a).
(7) With respect to a consumer loan not made pursuant to a
revolving loan account, the lender may contract for and receive a
minimum loan finance charge of not more than thirty dollars ($30). The
minimum loan finance charge allowed under this subsection may be
imposed only if the lender does not contract for or receive a
nonrefundable prepaid finance charge under subsection (9) and:
(a) the debtor prepays in full a consumer loan, refinancing, or
consolidation, regardless of whether the loan, refinancing, or
ES 464—LS 6738/DI 101 24
consolidation is precomputed;
(b) the loan, refinancing, or consolidation prepaid by the debtor
is subject to a loan finance charge that:
(i) is contracted for by the parties; and
(ii) does not exceed the rate prescribed in subsection (1); and
(c) the loan finance charge earned at the time of prepayment is
less than the minimum loan finance charge contracted for under
this subsection.
(8) The amount of thirty dollars ($30) in subsection (7) is subject to
change under the provisions on adjustment of dollar amounts (IC
24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), the
Reference Base Index to be used under this subsection is the Index for
October 1992.
(9) Except as provided in subsection (7), and subject to subsection
(12), in addition to the loan finance charge authorized by subsection (1)
and to any other charges and fees permitted by this chapter, a lender
may contract for and receive a nonrefundable prepaid finance charge
of not more than the following:
(a) In the case of a consumer loan that is secured by an interest in
land and that:
(i) is not made under a revolving loan account, two percent
(2%) three percent (3%) of the loan amount; or
(ii) is made under a revolving loan account, two percent (2%)
three percent (3%) of the line of credit.
(b) In the case of consumer loan that is not secured by an interest
in land, fifty dollars ($50) if the loan agreement is entered into
before July 1, 2020. If the loan agreement is entered into after
June 30, 2020, not more than the following:
(i) Seventy-five dollars ($75), in the case of a loan agreement
for a principal amount which is two thousand dollars ($2,000)
or less.
(ii) One hundred fifty dollars ($150) in the case of a loan
agreement for a principal amount which is more than two
thousand dollars ($2,000) but does not exceed four thousand
dollars ($4,000).
(iii) Two hundred dollars ($200) in the case of a loan
agreement for a principal amount which is more than four
thousand dollars ($4,000).
The amounts in this subsection are not subject to change under
IC 24-4.5-1-106.
(10) The nonrefundable prepaid finance charge provided for in
subsection (9) is not subject to refund or rebate. However, for any loan
ES 464—LS 6738/DI 101 25
entered into after June 30, 2020, any amount charged by the lender,
other than by a lender that is a depository institution (as defined in
IC 24-4.5-1-301.5(12)), under subsection (9) that exceeds the
applicable amount permitted by subsection (9)(b) constitutes a
violation of this article under IC 24-4.5-6-107.5(l) and is subject to
refund. Any amount charged by a depository institution (as defined in
IC 24-4.5-1-301.5(12)) under subsection (9) that exceeds the applicable
amount set forth in subsection (9)(b) is subject to refund.
(11) If the director determines that a lender's accrual method of
accounting as applied to a consumer loan under this section involves
the application of subterfuge for the purpose of circumventing this
chapter, the director may conform the loan finance charge and fees for
the transaction to the limitations set forth in this section and may
require a refund of overcharges under IC 24-4.5-6-106(2)(a). A
determination by the director under this subsection:
(a) must be in writing;
(b) shall be delivered to all parties in the transaction; and
(c) is subject to IC 4-21.5-3.
(12) At the time of consummation of a consumer loan:
(a) the loan finance charge authorized by subsection (1); and
(b) the nonrefundable prepaid finance charge authorized by
subsection (9) (including any amount charged by a depository
institution (as defined in IC 24-4.5-1-301.5(12)) that exceeds the
applicable amount set forth in subsection (9)(b));
are subject to IC 35-45-7 and, when combined, may not exceed the rate
set forth in IC 35-45-7-2.
(13) Notwithstanding subsections (9) and (10), in the case of a
consumer loan that is not secured by an interest in land, if a lender
retains any part of a nonrefundable prepaid finance charge charged on
a loan that is paid in full by a new loan from the same lender, the
following apply:
(a) If the loan is paid in full by the new loan within three (3)
months after the date of the prior loan, the lender may not charge
a nonrefundable prepaid finance charge on the new loan, or, in the
case of a revolving loan, on the increased credit line.
(b) The lender may not assess more than two (2) nonrefundable
prepaid finance charges in any twelve (12) month period.
(c) Subject to subdivisions (a) and (b), if a loan that is entered
into by a lender and a debtor before July 1, 2020, is paid in full by
a new loan from the same lender after June 30, 2020, the lender
may contract for and receive a nonrefundable prepaid finance
charge in the amount set forth in subsection (9)(b) for loan
ES 464—LS 6738/DI 101 26
agreements entered into after June 30, 2020.
(14) In the case of a consumer loan that is secured by an interest in
land, this section does not prohibit a lender from contracting for and
receiving a fee for preparing deeds, mortgages, reconveyances, and
similar documents under section 202(1)(d)(ii) of this chapter, in
addition to the nonrefundable prepaid finance charge provided for in
subsection (9).".
Page 6, between lines 19 and 20, begin a new paragraph and insert:
"SECTION 6. IC 24-5-0.5-2, AS AMENDED BY P.L.280-2019,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. (a) As used in this chapter:
(1) "Consumer transaction" means a sale, lease, assignment,
award by chance, or other disposition of an item of personal
property, real property, a service, or an intangible, except
securities and policies or contracts of insurance issued by
corporations authorized to transact an insurance business under
the laws of the state of Indiana, with or without an extension of
credit, to a person for purposes that are primarily personal,
familial, charitable, agricultural, or household, or a solicitation to
supply any of these things. However, the term includes the
following:
(A) A transfer of structured settlement payment rights under
IC 34-50-2.
(B) An unsolicited advertisement sent to a person by telephone
facsimile machine offering a sale, lease, assignment, award by
chance, or other disposition of an item of personal property,
real property, a service, or an intangible.
(C) The collection of or attempt to collect a debt by a debt
collector.
(D) Conduct that is described in section 3(a) of this chapter
and that arises from, occurs in connection with, or
otherwise involves a transaction between a supplier and a
state or local law enforcement agency within Indiana.
(2) "Person" means an individual, corporation, the state of Indiana
or its subdivisions or agencies, business trust, estate, trust,
partnership, association, nonprofit corporation or organization, or
cooperative or any other legal entity.
(3) "Supplier" means the following:
(A) A seller, lessor, assignor, or other person who regularly
engages in or solicits consumer transactions, including
soliciting a consumer transaction by using a telephone
facsimile machine to transmit an unsolicited advertisement.
ES 464—LS 6738/DI 101 27
The term includes a manufacturer, a wholesaler, or a retailer,
or, in a consumer transaction described in subdivision
(1)(D), any entity that provides a product or service to a
state or local law enforcement agency within Indiana,
whether or not the person deals directly with the consumer.
(B) A debt collector.
(4) "Subject of a consumer transaction" means the personal
property, real property, services, or intangibles offered or
furnished in a consumer transaction.
(5) "Cure" as applied to a deceptive act, means either:
(A) to offer in writing to adjust or modify the consumer
transaction to which the act relates to conform to the
reasonable expectations of the consumer generated by such
deceptive act and to perform such offer if accepted by the
consumer; or
(B) to offer in writing to rescind such consumer transaction
and to perform such offer if accepted by the consumer.
The term includes an offer in writing of one (1) or more items of
value, including monetary compensation, that the supplier
delivers to a consumer or a representative of the consumer if
accepted by the consumer.
(6) "Offer to cure" as applied to a deceptive act is a cure that:
(A) is reasonably calculated to remedy a loss claimed by the
consumer; and
(B) includes a minimum additional amount that is the greater
of:
(i) ten percent (10%) of the value of the remedy under
clause (A), but not more than four thousand dollars
($4,000); or
(ii) five hundred dollars ($500);
as compensation for attorney's fees, expenses, and other costs
that a consumer may incur in relation to the deceptive act.
(7) "Uncured deceptive act" means a deceptive act:
(A) with respect to which a consumer who has been damaged
by such act has given notice to the supplier under section 5(a)
of this chapter; and
(B) either:
(i) no offer to cure has been made to such consumer within
thirty (30) days after such notice; or
(ii) the act has not been cured as to such consumer within a
reasonable time after the consumer's acceptance of the offer
to cure.
ES 464—LS 6738/DI 101 28
(8) "Incurable deceptive act" means a deceptive act done by a
supplier as part of a scheme, artifice, or device with intent to
defraud or mislead. The term includes a failure of a transferee of
structured settlement payment rights to timely provide a true and
complete disclosure statement to a payee as provided under
IC 34-50-2 in connection with a direct or indirect transfer of
structured settlement payment rights.
(9) "Senior consumer" means an individual who is at least sixty
(60) years of age.
(10) "Telephone facsimile machine" means equipment that has
the capacity to transcribe text or images, or both, from:
(A) paper into an electronic signal and to transmit that signal
over a regular telephone line; or
(B) an electronic signal received over a regular telephone line
onto paper.
(11) "Unsolicited advertisement" means material advertising the
commercial availability or quality of:
(A) property;
(B) goods; or
(C) services;
that is transmitted to a person without the person's prior express
invitation or permission, in writing or otherwise.
(12) "Debt" has the meaning set forth in 15 U.S.C. 1692(a)(5).
(13) "Debt collector" has the meaning set forth in 15 U.S.C.
1692(a)(6). The term does not include a person admitted to the
practice of law in Indiana if the person is acting within the course
and scope of the person's practice as an attorney. The term
includes a debt buyer (as defined in IC 24-5-15.5).
(b) As used in section 3(b)(15) and 3(b)(16) of this chapter:
(1) "Directory assistance" means the disclosure of telephone
number information in connection with an identified telephone
service subscriber by means of a live operator or automated
service.
(2) "Local telephone directory" refers to a telephone classified
advertising directory or the business section of a telephone
directory that is distributed by a telephone company or directory
publisher to subscribers located in the local exchanges contained
in the directory. The term includes a directory that includes
listings of more than one (1) telephone company.
(3) "Local telephone number" refers to a telephone number that
has the three (3) number prefix used by the provider of telephone
service for telephones physically located within the area covered
ES 464—LS 6738/DI 101 29
by the local telephone directory in which the number is listed. The
term does not include long distance numbers or 800-, 888-, or
900- exchange numbers listed in a local telephone directory.
SECTION 7. IC 24-5-0.5-4, AS AMENDED BY P.L.118-2024,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) A person relying upon an uncured or
incurable deceptive act may bring an action for the damages actually
suffered as a consumer as a result of the deceptive act or five hundred
dollars ($500), whichever is greater. The court may increase damages
for a willful deceptive act in an amount that does not exceed the greater
of:
(1) three (3) times the actual damages of the consumer suffering
the loss; or
(2) one thousand dollars ($1,000).
Except as provided in subsection (k), the court may award reasonable
attorney's fees to the party that prevails in an action under this
subsection. This subsection does not apply to a consumer transaction
in real property, including a claim or action involving a construction
defect (as defined in IC 32-27-3-1(5)) brought against a construction
professional (as defined in IC 32-27-3-1(4)), except for purchases of
time shares and camping club memberships. This subsection does not
apply with respect to a deceptive act described in section 3(b)(20) of
this chapter. This subsection also does not apply to a violation of
IC 24-4.7, IC 24-5-12, IC 24-5-14, or IC 24-5-14.5. Actual damages
awarded to a person under this section have priority over any civil
penalty imposed under this chapter.
(b) Any person who is entitled to bring an action under subsection
(a) on the person's own behalf against a supplier for damages for a
deceptive act may bring a class action against such supplier on behalf
of any class of persons of which that person is a member and which has
been damaged by such deceptive act, subject to and under the Indiana
Rules of Trial Procedure governing class actions, except as herein
expressly provided. Except as provided in subsection (k), the court may
award reasonable attorney's fees to the party that prevails in a class
action under this subsection, provided that such fee shall be determined
by the amount of time reasonably expended by the attorney and not by
the amount of the judgment, although the contingency of the fee may
be considered. Except in the case of an extension of time granted by the
attorney general under IC 24-10-2-2(b) in an action subject to IC 24-10,
any money or other property recovered in a class action under this
subsection which cannot, with due diligence, be restored to consumers
within one (1) year after the judgment becomes final shall be returned
ES 464—LS 6738/DI 101 30
to the party depositing the same. This subsection does not apply to a
consumer transaction in real property, except for purchases of time
shares and camping club memberships. This subsection does not apply
with respect to a deceptive act described in section 3(b)(20) of this
chapter. Actual damages awarded to a class have priority over any civil
penalty imposed under this chapter.
(c) The attorney general may bring an action to enjoin a deceptive
act, including a deceptive act described in section 3(b)(20) of this
chapter, notwithstanding subsections (a) and (b). However, the attorney
general may seek to enjoin patterns of incurable deceptive acts with
respect to consumer transactions in real property. In addition, the court
may:
(1) issue an injunction;
(2) order the supplier to make payment of the money unlawfully
received from the aggrieved consumers to be held in escrow for
distribution to aggrieved consumers;
(3) for a knowing violation against a senior consumer, increase
the amount of restitution ordered under subdivision (2) in any
amount up to three (3) times the amount of damages incurred or
value of property or assets lost;
(4) order the supplier to pay to the state the reasonable costs of
the attorney general's investigation and prosecution related to the
action;
(5) provide for the appointment of a receiver; and
(6) order the department of state revenue to suspend the supplier's
registered retail merchant certificate, subject to the requirements
and prohibitions contained in IC 6-2.5-8-7(a)(5), if the court finds
that a violation of this chapter involved the sale or solicited sale
of a synthetic drug (as defined in IC 35-31.5-2-321), a synthetic
drug lookalike substance (as defined in IC 35-31.5-2-321.5
(repealed)) (before July 1, 2019), a controlled substance analog
(as defined in IC 35-48-1-9.3), or a substance represented to be a
controlled substance (as described in IC 35-48-4-4.6); and
(7) grant relief in an action that arises from, or otherwise
involves, a consumer transaction described in section
2(a)(1)(D) of this chapter only when the action is brought and
enforced by the attorney general under this subsection.
(d) In an action under subsection (a), (b), or (c), the court may void
or limit the application of contracts or clauses resulting from deceptive
acts and order restitution to be paid to aggrieved consumers.
(e) In any action under subsection (a) or (b), upon the filing of the
complaint or on the appearance of any defendant, claimant, or any
ES 464—LS 6738/DI 101 31
other party, or at any later time, the trial court, the supreme court, or the
court of appeals may require the plaintiff, defendant, claimant, or any
other party or parties to give security, or additional security, in such
sum as the court shall direct to pay all costs, expenses, and
disbursements that shall be awarded against that party or which that
party may be directed to pay by any interlocutory order by the final
judgment or on appeal.
(f) Any person who violates the terms of an injunction issued under
subsection (c) shall forfeit and pay to the state a civil penalty of not
more than fifteen thousand dollars ($15,000) per violation. For the
purposes of this section, the court issuing an injunction shall retain
jurisdiction, the cause shall be continued, and the attorney general
acting in the name of the state may petition for recovery of civil
penalties. Whenever the court determines that an injunction issued
under subsection (c) has been violated, the court shall award
reasonable costs to the state.
(g) If a court finds any person has knowingly violated section 3 or
10 of this chapter, other than section 3(b)(19), 3(b)(20), or 3(b)(40) of
this chapter, the attorney general, in an action pursuant to subsection
(c), may recover from the person on behalf of the state a civil penalty
of a fine not exceeding five thousand dollars ($5,000) per violation.
(h) If a court finds that a person has violated section 3(b)(19) of this
chapter, the attorney general, in an action under subsection (c), may
recover from the person on behalf of the state a civil penalty as follows:
(1) For a knowing or intentional violation, one thousand five
hundred dollars ($1,500).
(2) For a violation other than a knowing or intentional violation,
five hundred dollars ($500).
A civil penalty recovered under this subsection shall be deposited in
the consumer protection division telephone solicitation fund
established by IC 24-4.7-3-6 to be used for the administration and
enforcement of section 3(b)(19) of this chapter.
(i) A senior consumer relying upon an uncured or incurable
deceptive act, including an act related to hypnotism, may bring an
action to recover treble damages, if appropriate.
(j) An offer to cure is:
(1) not admissible as evidence in a proceeding initiated under this
section unless the offer to cure is delivered by a supplier to the
consumer or a representative of the consumer before the supplier
files the supplier's initial response to a complaint; and
(2) only admissible as evidence in a proceeding initiated under
this section to prove that a supplier is not liable for attorney's fees
ES 464—LS 6738/DI 101 32
under subsection (k).
If the offer to cure is timely delivered by the supplier, the supplier may
submit the offer to cure as evidence to prove in the proceeding in
accordance with the Indiana Rules of Trial Procedure that the supplier
made an offer to cure.
(k) A supplier may not be held liable for the attorney's fees and
court costs of the consumer that are incurred following the timely
delivery of an offer to cure as described in subsection (j) unless the
actual damages awarded, not including attorney's fees and costs, exceed
the value of the offer to cure.
(l) If a court finds that a person has knowingly violated section
3(b)(20) of this chapter, the attorney general, in an action under
subsection (c), may recover from the person on behalf of the state a
civil penalty not exceeding one thousand dollars ($1,000) per
consumer. In determining the amount of the civil penalty in any action
by the attorney general under this subsection, the court shall consider,
among other relevant factors, the frequency and persistence of
noncompliance by the debt collector, the nature of the noncompliance,
and the extent to which the noncompliance was intentional. A person
may not be held liable in any action by the attorney general for a
violation of section 3(b)(20) of this chapter if the person shows by a
preponderance of evidence that the violation was not intentional and
resulted from a bona fide error, notwithstanding the maintenance of
procedures reasonably adapted to avoid the error. A person may not be
held liable in any action for a violation of this chapter for contacting a
person other than the debtor, if the contact is made in compliance with
the Fair Debt Collection Practices Act.
(m) If a court finds that a person has knowingly or intentionally
violated section 3(b)(40) of this chapter, the attorney general, in an
action under subsection (c), may recover from the person on behalf of
the state a civil penalty in accordance with IC 24-5-14.5-12(b). As
specified in IC 24-5-14.5-12(b), a civil penalty recovered under
IC 24-5-14.5-12(b) shall be deposited in the consumer protection
division telephone solicitation fund established by IC 24-4.7-3-6 to be
used for the administration and enforcement of IC 24-5-14.5. In
addition to the recovery of a civil penalty in accordance with
IC 24-5-14.5-12(b), the attorney general may also recover reasonable
attorney fees and court costs from the person on behalf of the state.
Those funds shall also be deposited in the consumer protection division
telephone solicitation fund established by IC 24-4.7-3-6.".
Page 7, between lines 27 and 28, begin a new paragraph and insert:
"SECTION 9. IC 28-7-1-33, AS AMENDED BY P.L.73-2016,
ES 464—LS 6738/DI 101 33
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 33. (a) Except as provided in section 33.1 of this
chapter, any two (2) or more credit unions may, with the approval of
the department, merge. This section authorizes the merger of a credit
union organized under this chapter with a credit union organized under
any other law.
(b) The board of directors of each credit union participating in the
merger must by majority vote approve a joint agreement of merger.
(c) After the resolutions approving a joint agreement of merger have
been adopted by the board of directors of each credit union, the credit
unions shall submit the resolutions and joint agreement to the
department for approval. The department may, in the department's
discretion, approve or disapprove the resolution and joint agreement.
In deciding whether to approve or disapprove the resolution and joint
agreement under this section, the department shall consider the
following factors:
(1) Whether the surviving credit union resulting from the
proposed transaction will be operated in a safe, sound, and
prudent manner.
(2) Whether the financial condition of any credit union subject to
the proposed transaction will jeopardize the financial stability of
any other credit unions subject to the proposed transaction.
(3) Whether the proposed transaction will result in a credit union
that has inadequate capital, unsatisfactory management, or poor
earnings prospects.
(4) Whether the proposed transaction, in the department's
judgment and considering the available information under the
prevailing circumstances, will result in an institution that is more
favorable to the stakeholders than if the entities were to remain
separate.
(5) Whether the management or other principals of the credit
union that will result from the proposed transaction are qualified
by character and financial responsibility to control and operate in
a legal and proper manner the resulting credit union.
(6) Whether the credit unions subject to the proposed transaction
furnish all the information the department requires in reaching the
department's decision.
(d) If the joint agreement is approved by the department, any credit
union whose existence will terminate as a result of the merger shall
submit the joint agreement to a vote of its shareholders at the meeting
as directed by the resolution of the board of directors. A majority of the
shareholders present at the meeting voting may approve the joint
ES 464—LS 6738/DI 101 34
agreement. However, the department may permit the merger to become
effective without the affirmative vote of the membership of a credit
union if that credit union is in danger of insolvency or if the qualified
group or groups associated with the credit union either have ceased or
will soon cease to exist.
(e) After approval of the joint agreement by the shareholders of the
merging credit unions, each credit union shall execute in triplicate
articles of merger, on forms furnished by the department, which shall
set forth the following:
(1) The time and place of the meeting of the board of directors at
which the plan was approved.
(2) The vote by which the plan was approved by the board.
(3) A copy of the resolution or other action by which the plan was
agreed upon.
(4) The time and place of the meeting of the members at which
the plan was approved.
(5) The vote by which the plan was approved by the members.
(f) The articles, joint agreement, and resolutions shall be delivered
to the department for certification, which shall be evidenced in the
manner prescribed in IC 28-12-5, and shall be presented to the
secretary of state for filing. The secretary of state shall file one (1) copy
of the articles of merger and shall issue a certificate of merger and two
(2) copies of the articles of merger to the surviving credit union. The
date on which the secretary of state issues the certificate of merger is
the effective date of the merger.
(g) The articles of merger shall be filed with the county recorder of
the county in which the principal office of the surviving credit union is
located.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 464 as printed January 24, 2025.)
TESHKA
Committee Vote: yeas 11, nays 1.
ES 464—LS 6738/DI 101