Indiana Code 5-13-8-7. Revocation of commission of depository to do business with Indiana resident
(1) An individual who is a resident of Indiana.
Terms Used In Indiana Code 5-13-8-7
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Statute: A law passed by a legislature.
(3) A corporation, a limited liability company, a partnership, a limited partnership, a trust, an estate, or other legal entity that:
(A) is established under Indiana law; or
(B) maintains its principal office in Indiana.
(4) A corporation, a limited liability company, a partnership, a limited partnership, a trust, an estate, or other legal entity that:
(A) is established under the law of a state other than Indiana; and
(B) carries out substantial business activities in Indiana, including the employment of individuals who reside in Indiana.
(b) As used in this section, “investment in an Indiana resident” means an investment in an interest-bearing obligation of a political subdivision (as defined in IC 36-1-2-13) in Indiana.
(c) The local board of finance under which any depository operates may at any time revoke the commission of any depository at a meeting called for the purpose of revoking a commission, of which the depository shall have been notified by advance written notice sent by first class or registered mail not less than twenty (20) days before the meeting and at which the depository has the right to be heard. Not later than thirty (30) days after a local board of finance revokes the commission of a depository, the local board of finance shall give written notice of the action to the board of depositories.
(d) The local board of finance may revoke the commission of any depository to do business with the political subdivision:
(1) if the depository is unwilling or unable to perform banking services reasonably required by the local board of finance, considering the volume of transactions, that are:
(A) related to the public funds deposited in a deposit account described in IC 5-13-9-4(a); and
(B) required by the political subdivision served by the local board of finance to carry out the responsibilities of the political subdivision, as determined by the local board of finance;
(2) if the depository is unwilling or unable to comply with a state or federal statute, rule, or other regulation that governs the records or handling of public funds of the political subdivision served by the local board of finance, as determined by the local board of finance;
(3) if the depository ceases to qualify as a depository under this chapter, as determined by the local board of finance;
(4) if the depository fails to conduct lending activities in Indiana to such an extent that, at the end of each quarter, pursuant to the depository’s certification, the sum of:
(A) the total principal amount of outstanding loans to Indiana residents; plus
(B) the total value of investments in Indiana residents;
will at least equal the total amount of the public funds of the state and political subdivisions of the state that are on deposit in the financial institution; or
(5) for any cause that is adopted in the written rules of the local board of finance and that is directly related to the safe handling of public funds.
(e) Upon revocation, the depository shall immediately render an accounting and make settlement for all public funds deposited with the depository.
As added by P.L.19-1987, SEC.10. Amended by P.L.74-1995, SEC.3; P.L.18-1996, SEC.9; P.L.46-1997, SEC.7.