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IN SB0435
Bill
Status
1/12/2015
Primary Sponsor
Brandt Hershman
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AI Summary
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Declares financial institutions ineligible to become state depositories if found by the Department of Financial Institutions or their primary federal regulator to violate or not substantially comply with the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989.
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Requires the Department of Financial Institutions to send certified notice to a financial institution's chief executive officer upon receiving credible evidence of noncompliance, describing the violations and consequences.
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Allows financial institutions 20 days to request a hearing to dispute noncompliance findings; hearings must be scheduled within 20 days of the request, with procedures subject to Indiana Administrative Code.
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Permits institutions already serving as depositories to retain funds until maturity but prohibits reinvestment and acceptance of additional public funds if found noncompliant.
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Requires the Department to immediately notify the board for depositories chairperson of any final determination of noncompliance or subsequent remediation achieving substantial compliance.
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Effective date: July 1, 2015.
Legislative Description
Public depositories. Provides that a financial institution is ineligible to become a depository and receive public funds of the state if the financial institution has been found by: (1) the department of financial institutions (department); or (2) the financial institution's primary federal regulator; to not be in substantial compliance with, or to have violated, the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (act). Sets forth procedures that the department must follow if the department receives credible evidence that a financial institution is not in substantial compliance with, or has violated, the act. Provides that if it is
Last Action
First Reading: referred to Committee on Insurance & Financial Institutions
1/12/2015