Indiana Code 28-5-1-11. Acquisition or conveyance of real estate; purposes
(1) Such as shall be necessary for the convenient transaction of its business, but the cost or value of such real estate as carried on its books shall not exceed fifty percent (50%) of the amount of its capital and surplus, without the written consent of the department.
Terms Used In Indiana Code 28-5-1-11
- company: shall mean and include any corporation to which this chapter is applicable. See Indiana Code 28-5-1-3
- Contract: A legal written agreement that becomes binding when signed.
- department: means the department of financial institutions of the state of Indiana. See Indiana Code 28-5-1-3
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- in writing: include printing, lithographing, or other mode of representing words and letters. See Indiana Code 1-1-4-5
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(3) Such as it shall purchase at sales under judgments or decrees of foreclosure on mortgages held by such company or shall acquire as additional security for obligations due such company.
(4) Such as shall have been sold under a title-retaining, installment, real estate sales contract, the term of which does not exceed twelve (12) years, where such contract is either purchased by it or taken as collateral security for a loan. However, the total cost of all real estate sold on title-retaining installment sales contracts as carried on the books of the company shall not at any one (1) time exceed five percent (5%) of the total resources of the company when such real estate title-retaining installment sales contracts were acquired without the written approval of the department.
(b) No such company shall hold the title or possession of any real estate purchased or otherwise acquired to secure any debts or obligations due to it, for a longer period than ten (10) years after such real estate is or has been purchased or otherwise acquired without the consent in writing of the department. However, any such company may sell any real estate so purchased or otherwise acquired by it under a title-retaining installment real estate sales contract, the term of which shall not exceed twelve (12) years, and hold title or possession thereof until the same is conveyed to the purchaser thereof under the terms and provisions of any such contract.
(c) For the purposes of subsection (a)(1), real estate purchased or held for the convenient transaction of the business of a company includes the following:
(1) Real estate on which the principal office or a branch office of the company is located.
(2) Real estate that is the location of facilities supporting the operations of the company, such as parking facilities, data processing centers, loan production offices, automated teller machines, night depositories, facilities necessary for the operations of a company subsidiary, or other facilities that are approved by the director.
(3) Real estate that the board of directors of the company expects, in good faith, to use as a company office or facility in the future.
(d) If real estate referred to in subsection (c)(3) is held by a company for one (1) year without being used as a company office or facility, the board of directors of the company shall state, by resolution, definite plans for the use of the real estate. A resolution adopted under this subsection shall be made available for inspection by the department.
(e) Real estate referred to in subsection (c)(3) may not be held by a company for more than three (3) years without being used as a company office or facility unless:
(1) the board of directors of the company, by resolution:
(A) reaffirms annually that the company expects to use the real estate as a company office or facility in the future; and
(B) explains the reason why the real estate has not yet been used as a company office or facility; and
(2) the director determines that:
(A) the continued holding of the real estate by the company does not endanger the safety and soundness of the company; and
(B) the company is holding the real estate to use the real estate in the future for one (1) of the purposes set forth in subsection (c)(1) or (c)(2).
(f) Real estate referred to in subsection (c)(3) may not be held by a company for more than ten (10) years without being used as a company office or facility unless the department consents in writing to the continued holding of the real estate by the company.
(g) If a company closes a principal or branch office or a facility on, or discontinues operations on, real estate described in subsection (c)(1) or (c)(2), the company shall divest itself of the real estate not later than five (5) years from the date of the closing or discontinuation.
Formerly: Acts 1935, c.181, s.11; Acts 1947, c.135, s.2; Acts 1955, c.20, s.5; Acts 1972, P.L.198, SEC.1. As amended by P.L.14-1992, SEC.112; P.L.213-2007, SEC.60; P.L.217-2007, SEC.58; P.L.73-2016, SEC.23.