Title 28, FINANCIAL INSTITUTIONS

Sec. 17.3. At least quarterly, the president or manager shall prepare and deliver to the board of directors a report listing the outstanding indebtedness of all officers, directors, and committee members. A report prepared under this subsection must be retained at the credit unio…

Sec. 17.5. The credit committee or loan officer may approve a line of credit, which shall establish a signature limit. Advances in excess of the signature limit shall be permitted if security is pledged to guarantee that amount in excess of the signature limit. Advances may be gr…

Sec. 18. (a) The supervisory committee shall cause the share and loan accounts of the members to be verified with the records of the treasurer at least each biennium. A verification under this subsection shall be performed using one (1) of the following methods: (1) A verificatio…

Sec. 19. (a) The capital of a credit union shall consist of the payments on shares which have been made to it by members. A credit union may attach a lien on the shares of any member with outstanding obligations to the credit union. A credit union may, upon the resignation of a m…

Sec. 19.1. (a) Beginning on the effective date of a credit union's classification as adequately capitalized or lower, the credit union must increase the dollar amount of the credit union's net worth on a quarterly basis, either: (1) in the current quarter; or (2) on average over …

Sec. 19.2. (a) A credit union that is classified as undercapitalized or lower must do the following: (1) Increase the credit union's net worth in accordance with section 19.1 of this chapter. (2) Submit a net worth restoration plan to the director at the time and in the manner sp…

Sec. 19.3. (a) A credit union that is classified as significantly undercapitalized or lower must do the following: (1) Increase the credit union's net worth in accordance with section 19.1 of this chapter. (2) Submit a net worth restoration plan to the director at the time and in…

Sec. 19.4. (a) A credit union that is classified as critically undercapitalized must do the following: (1) Increase the credit union's net worth in accordance with section 19.1 of this chapter. (2) Submit a net worth restoration plan to the director at the time and in the manner …

Sec. 20.1. (a) Shares may be issued as the bylaws provide. The provisions of IC 28-1-20-6 apply to loans to any borrower and shall inure to the benefit of the credit union. Shares may be issued in a joint tenancy with right of survivorship, but no joint tenant shall be permitted …

Sec. 22. (a) A credit union may borrow from any source. The total borrowing of a credit union may not at any time exceed fifty per cent (50%) of the unimpaired shares capital and surplus of the credit union. (b) A credit union may receive deposits of state and federal public fund…

Sec. 23. (a) A credit union may make loans to its members for such purposes and upon such security as the bylaws provide, and as the credit committee or loan officer shall approve. (b) A member may receive a loan for crops in installments. (c) A borrower may repay the whole loan …

Sec. 24. (a) All entrance charges shall, after payment of the organization expenses, be known as reserve income, and shall be added to the regular reserve of the credit union. At the close of the dividend period, there shall be set apart to the regular reserve ten percent (10%) o…

Sec. 25. Dividends may be declared by the board of directors, after making provision for the required reserves. The board of directors may declare separate dividend periods and rates for each type of share account. Formerly: Acts 1961, c.182, s.25; Acts 1969, c.133, s.8; Acts 197…

Sec. 26.3. (a) A credit union board may terminate the membership of, or terminate some or all services to, a member who does any of the following: (1) Causes a loss to the credit union. (2) Commits fraud or another misdeed against the credit union or against a person on the premi…

Sec. 26.5. (a) A credit union may refuse to make a payment from an account to a person claiming an interest in the account if the credit union: (1) is uncertain under the agreement governing the account of who is entitled to receive the payment; or (2) has actual knowledge of a d…

Sec. 27.1. A credit union may liquidate its affairs and dissolve in the following manner: (1) The board of directors of a credit union may vote to submit the question of dissolution to the shareholders. (2) Upon the decision of the board of directors under subdivision (1), paymen…

Sec. 28. A credit union may: (1) with department approval; or (2) by meeting the department's established criteria to be exempt from the department's approval; change its place of business. The department may deny the change of location if the new situs is undesirable or would de…

Sec. 29. Any credit union organized or reorganized under the laws of Indiana or the United States may convert from a state charter to a federal charter or from a federal charter to a state charter as follows: (1) A federally chartered credit union may apply for a state charter by…

Sec. 3. A credit union may not commence business until it submits a completed set of bylaws to the department. The department shall have a form of bylaws prepared, consistent with this chapter, which shall be used by credit union incorporators. Bylaws shall be available to person…

Sec. 31. Every credit union shall make provisions for adequate fidelity coverage for all directors, officers, and employees having access to money or bonds of the credit union. The amount and form of fidelity coverage must be approved annually by the board of directors of the cre…

Sec. 31.3. (a) As used in this section, "official" means an individual who is or who was a director, committee member, officer, or employee of a credit union. (b) An official of a credit union shall discharge the duties of the official's position in good faith and with the degree…

Sec. 31.5. (a) Before transacting business in Indiana, a credit union shall insure its shares and other deposits with the National Credit Union Share Insurance Fund or a similar insurance company approved by the department. (b) The department may examine any organization that ins…

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.…

Sec. 33.1. The approval of the department of the merger of two (2) or more credit unions is not required under this chapter if the credit union surviving the merger is an institution organized or reorganized under the laws of the United States or a state (as defined in IC 28-2-17…

Sec. 34. (a) A credit union organized under the laws of another state may establish a branch office in Indiana if: (1) the credit union: (A) files an application with the department; or (B) otherwise meets criteria established by the department to be exempt from application; (2) …

Sec. 35. (a) This section applies to a credit union organized under Acts 1933, c.40, s.296 through s.323. (b) The amendments to this chapter made by Acts 1974, P.L.130 do not affect a credit union's rights existing on June 11, 1974. As added by P.L.1-1989, SEC.58.

Sec. 36. An automated teller machine (ATM) may be owned or operated individually by any credit union or jointly on a cost sharing or fee basis. As added by P.L.192-1997, SEC.22.

Sec. 37. All members, regardless of age, may become depositors in a credit union and shall be subject to the same duties and liabilities respecting their deposits. Whenever a deposit is accepted by a credit union in the name of any person, regardless of age, the deposit may be wi…

Sec. 38. With respect to a residential real property financing or refinancing, a credit union shall comply with IC 6-1.1-12-43. As added by P.L.64-2004, SEC.32.

Sec. 39. (a) As used in this section, "loans and extensions of credit" includes all direct or indirect advances of funds made to a member on the basis of: (1) an obligation of the member to repay the funds; or (2) a pledge of specific property by or on behalf of the member and fr…

Sec. 4. (a) The bylaws, as provided in section 3 of this chapter, with acknowledgment of their adoption by the incorporators or board of directors, must provide at least the following: (1) That the board of directors shall annually establish a date for the annual meeting. The byl…

Sec. 7. (a) A credit union may amend its articles of incorporation. An amendment shall be proposed by the board of directors by the adoption of a resolution setting forth the proposed amendment and directing that it be submitted to a vote of the shareholders upon approval by the …

Sec. 8. (a) The use of any name or title that contains the words "credit union", or that means "credit union" in any language, is unlawful unless the name is used by: (1) a corporation authorized to use the words "credit union" under Indiana or United States law; or (2) the India…

Sec. 9. (a) A credit union has the following powers: (1) To issue shares of its capital stock to its members. No commission or compensation shall be paid for securing members or for the sale of shares. (2) To extend credit to officers, directors, or committee members under sectio…

Sec. 9.1. (a) A credit union or a related credit union service organization (as defined in section 0.5(7) of this chapter) that acts as an insurance producer for the sale of a life insurance policy or an annuity contract issued by a life insurance company (as defined in IC 27-1-2…

Sec. 9.2. (a) As used in this section, "rights and privileges" means the power: (1) to: (A) create; (B) deliver; (C) acquire; or (D) sell; a product, a service, or an investment that is available to or offered by; or (2) to engage in mergers, consolidations, reorganizations, or o…

Sec. 1. For the purposes of this chapter: (a) "Department" shall mean the department of financial institutions for the state of Indiana. (b) "Bank services" shall mean check and deposit sorting and posting, computation and posting of interest and other credits and charges, prepar…

Sec. 1.5. Notwithstanding any limitation or prohibition otherwise imposed by any provision of the laws of this state, any bank or trust company may invest in a bank service corporation upon the same terms and conditions as are provided by Section 709 of the Garn-St. Germain Depos…

Sec. 2. Any two (2) or more banks or trust companies may invest in a bank service corporation an amount not to exceed ten percent (10%) of the capital and surplus of each of them as defined in IC 28-1-1. Formerly: Acts 1963, c.359, s.2. As amended by P.L.263-1985, SEC.202; P.L.21…

Sec. 3. In the event the stock of a bank service corporation is held by two (2) banks or trust companies, one (1) of the banks or trust companies ceases to use the services of the bank service corporation and ceases to hold stock in such corporation thereby leaving the other bank…

Sec. 4. Whenever any bank or trust company requests bank service from a bank service corporation which supplies the same type of bank service to other banks or trust companies and the applying bank or trust company is competitive with any bank or trust company which holds stock i…

Sec. 5. No bank or trust company subject to examination by the department may cause to be performed, by contract or otherwise, any bank services for itself, either on or off its premises, until such time as assurances are furnished to the department by the bank or trust company a…

Sec. 1. This article does not apply to income withholding under IC 31-16-15. As added by P.L.258-1989, SEC.2. Amended by P.L.1-1997, SEC.117.

Sec. 1. A reference to a federal law or federal regulation in this title is a reference to the law or regulation as in effect December 31, 2024. As added by P.L.33-1991, SEC.55. Amended by P.L.14-1992, SEC.159; P.L.42-1993, SEC.88; P.L.122-1994, SEC.106; P.L.262-1995, SEC.69; P.L…

Sec. 2. The definitions in IC 28-1-1-3 apply in the following statutes: (1) This article. (2) IC 28-11. (3) IC 28-12. (4) IC 28-13. (5) IC 28-14. As added by P.L.14-1992, SEC.160. Amended by P.L.262-1995, SEC.70.

Sec. 3. For purposes of IC 28-12, "corporation" means any of the following: (1) A bank and trust company. (2) A bank. (3) A savings association. (4) A trust company. (5) A stock savings bank. (6) A corporate fiduciary. As added by P.L.14-1992, SEC.161. Amended by P.L.42-1993, SEC…