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IC 28-8-4-1
Application of chapter
Sec. 1. (a) This chapter does not apply to the following:
(1) The United States or an instrumentality of the United States.
(2) The state, a political subdivision of the state, or an
instrumentality of the state or of a political subdivision of the
state.
(3) A bank, a bank holding company, an industrial loan and
investment company, a credit union, a savings association, a
savings bank, a mutual bank, or a mutual savings bank
organized under the laws of any state or the United States.
(4) A stored value card issued by a state or federally chartered
financial institution.
(b) Unless otherwise provided in this chapter, this chapter does
not apply to an authorized delegate of a person:
(1) licensed under this chapter or excluded under subsection (a);
and
(2) acting within the scope of authority conferred by a written
contract conforming to the requirements of section 49 of this
chapter.
As added by P.L.42-1993, SEC.85. Amended by P.L.172-1997,
SEC.23; P.L.79-1998, SEC.81; P.L.258-2003, SEC.16; P.L.10-2006,
SEC.51 and P.L.57-2006, SEC.51.
IC 28-8-4-2
Applicant
Sec. 2. As used in this chapter, "applicant" means a person filing
an application for a license under this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-3
Authorized delegation
Sec. 3. As used in this chapter, "authorized delegate" means an
entity designated by a licensee to:
(1) sell or issue payment instruments; or
(2) engage in the business of transmitting money on behalf of
the licensee.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-3.5
Closed system stored value card
Sec. 3.5. As used in this chapter, "closed system stored value
card" refers to a stored value card the use of which is limited to one
(1) or more specified merchants or locations.
As added by P.L.10-2006, SEC.52 and P.L.57-2006, SEC.52.
IC 28-8-4-5
Controlling person
Sec. 5. As used in this chapter, "controlling person" means a
person in control of a licensee.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-6
Department
Sec. 6. As used in this chapter, "department" means the members
of the department of financial institutions.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-7
Director
Sec. 7. As used in this chapter, "director" has the meaning set
forth in IC 28-11-2-1.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-8
Executive officer
Sec. 8. As used in this chapter, "executive officer" means a person
who is or performs the duties of the licensee's:
(1) president;
(2) chief executive officer;
(3) treasurer; or
(4) chief financial officer.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-9
Key shareholder
Sec. 9. As used in this chapter, "key shareholder" means:
(1) a person who owns; or
(2) a group of persons acting as a unit that own;
at least twenty-five percent (25%) of a class of an applicant's stock.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-10
Licensed activities
Sec. 10. As used in this chapter, "licensed activities" means the
activities:
(1) that a licensee engages in within Indiana; and
(2) for which a licensee has obtained a license under this
chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-11
Licensee
Sec. 11. As used in this chapter, "licensee" means a person
licensed under this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-12
Material litigation
Sec. 12. As used in this chapter, "material litigation" means
litigation that under generally accepted accounting principles is
considered significant to the financial health of a business and would
be required to be referenced in a corporation's or business's annual
audited financial statements, report to shareholders, or a similar
document.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-13
Money transmission
Sec. 13. As used in this chapter, "money transmission" means:
(1) the sale or issuance of payment instruments; or
(2) engaging in the business of:
(A) receiving money for transmission from; or
(B) transmitting money to;
any location and by any means, including a payment instrument,
wire, facsimile, or electronic transfer.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-14
Outstanding payment instrument
Sec. 14. As used in this chapter, "outstanding payment
instrument" means a payment instrument issued by the licensee that:
(1) has been sold in the United States;
(2) has been sold:
(A) by the licensee; or
(B) by an authorized delegate of the licensee and has been
reported to the licensee as having been sold; and
(3) has not been paid by or on behalf of the licensee.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-15
Payment instrument
Sec. 15. (a) As used in this chapter, "payment instrument" means:
(1) a check;
(2) a draft;
(3) a money order;
(4) a traveler's check;
(5) a stored value card, other than a closed system stored value
card; or
(6) an instrument or written order for the transmission or
payment of money;
sold or issued to one (1) or more persons, whether such instrument
is negotiable.
(b) As used in this chapter, "payment instrument" does not
include:
(1) a credit card voucher;
(2) a letter of credit;
(3) an instrument that is redeemable by the issuer in goods or
services; or
(4) a closed system stored value card.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.53
and P.L.57-2006, SEC.53.
IC 28-8-4-16
Permissible investments
Sec. 16. As used in this chapter, "permissible investments" means:
(1) cash;
(2) certificates of deposit or other debt obligations of a financial
institution, either domestic or foreign;
(3) bills of exchange or time drafts drawn on and accepted by
a commercial bank, otherwise known as bankers' acceptances,
that are eligible for purchase by member banks of the Federal
Reserve system;
(4) an investment bearing a rating of one (1) of the three (3)
highest grades as defined by a nationally recognized
organization that rates such securities;
(5) investment securities that are obligations of the United
States, its agencies or instrumentalities, or obligations that are
guaranteed fully as to principal and interest by the United
States, or any obligations of any state, municipality, or any
political subdivision thereof;
(6) shares in a money market mutual fund, interest-bearing bills
or notes or bonds, debentures or stock traded on any national
securities exchange or on a national over-the-counter market, or
mutual funds primarily composed of such securities;
(7) a demand borrowing agreement or agreements made to a
corporation or a subsidiary of a corporation whose capital stock
is listed on a national exchange;
(8) receivables that are due to a licensee from the licensee's
authorized delegates under a contract described in section 49 of
this chapter, which are not past due or doubtful of collection; or
(9) an investment that is approved by the director.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-17
Person
Sec. 17. As used in this chapter, "person" means an individual, a
partnership, an association, a joint stock association, a trust, or a
corporation.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-18
Security device
Sec. 18. As used in this chapter, "security device" includes a
surety bond, an irrevocable letter of credit, or other similar security
device.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-19
The state
Sec. 19. As used in this chapter, "the state" means Indiana.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-19.5
Stored value card
Sec. 19.5. As used in this chapter, "stored value card" means a
card or device that:
(1) may be used by a holder to:
(A) perform financial transactions; or
(B) obtain, purchase, or receive money, goods, or services;
in an amount or having a value that does not exceed the dollar
value of the card; and
(2) has a magnetic stripe or computer chip that enables dollar
values to be electronically added to or deducted from the dollar
value of the card.
As added by P.L.10-2006, SEC.54 and P.L.57-2006, SEC.54.
IC 28-8-4-20
License requirement; application; evidence of compliance
Sec. 20. (a) A person may not engage in the business of money
transmission without a license required by this chapter.
(b) An application for a license must be submitted on a form
prescribed by the department and must include the information
required by the department.
(c) The director may request that the applicant provide evidence
of compliance with this section at:
(1) the time of application;
(2) the time of renewal of a license; or
(3) any other time considered necessary by the director.
(d) For purposes of subsection (c), evidence of compliance may
include:
(1) criminal background checks, including a national criminal
history check by the Federal Bureau of Investigation;
(2) credit histories; and
(3) other background checks considered necessary by the
director.
As added by P.L.42-1993, SEC.85. Amended by P.L.63-2001, SEC.20
and P.L.134-2001, SEC.22; P.L.10-2006, SEC.55 and P.L.57-2006,
SEC.55.
IC 28-8-4-21
Form of license applications; security devices; fees
Sec. 21. (a) An application for a license under this chapter must
be:
(1) in writing;
(2) under oath; and
(3) in a form prescribed by the director.
(b) An application for a license must be accompanied by the
following:
(1) A security device as required by section 27 of this chapter
or a deposit as required by section 29 of this chapter. If
requested, the director may permit corporations that are directly
or indirectly commonly controlled to engage in activities under
this chapter pursuant to a single security device filed under
section 27 of this chapter or a single deposit filed under section
29 of this chapter.
(2) A nonrefundable license fee as provided in section 32 of this
chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-22
Corporate license applications
Sec. 22. An application filed by a corporate applicant must
comply with the provisions of sections 24 and 25 of this chapter.
As added by P.L.42-1993, SEC.85. Amended by P.L.122-1994,
SEC.102.
IC 28-8-4-23
Noncorporate license applications
Sec. 23. An application filed by an applicant that is not a
corporation must comply with sections 24 and 26 of this chapter.
As added by P.L.42-1993, SEC.85. Amended by P.L.122-1994,
SEC.103.
IC 28-8-4-24
Contents of license applications
Sec. 24. An application must contain the following:
(1) The name of the applicant.
(2) The applicant's principal address.
(3) A fictitious or trade name, if any, used by the applicant in
the conduct of its business.
(4) The location of the applicant's business records.
(5) The history of the applicant's:
(A) material litigation; and
(B) criminal indictments, convictions, and guilty or nolo
contendere pleas for felonies involving fraud, deceit, or
misrepresentation under the laws of Indiana or any other
jurisdiction.
IC 28-8-4-25
Contents of corporate license applications
Sec. 25. In addition to the items listed in section 24 of this
chapter, if an applicant is a corporation, the applicant must provide
the following items and information relating to the applicant's
corporate structure:
(1) State of incorporation.
(2) Date of incorporation.
(3) A certificate from the state in which the applicant was
incorporated stating that the corporation is in good standing.
(4) A description of the corporate structure of the applicant,
including the following:
(A) The identity of the parent of the applicant.
(B) The identity of each subsidiary of the applicant.
(C) The names of the stock exchanges in which the
applicant, the parent, and the subsidiaries are publicly
traded.
(5) The:
(A) name;
(B) business address;
(C) residence address; and
(D) employment history;
for each executive officer, key shareholder, and officer or
manager who will be in charge of the applicant's licensed
activities.
(6) The:
(A) history of material litigation; and
(B) the history of criminal indictments, convictions, and
guilty or nolo contendere pleas for felonies involving fraud,
deceit, or misrepresentation under the laws of Indiana or any
other jurisdiction;
for each executive officer, key shareholder, and director of the
applicant.
(7) Except as provided in subdivision (8), copies of the
applicant's audited financial statements for the current year and,
if available, for the preceding two (2) years, including a:
(A) balance sheet;
(B) statement of income or loss;
(C) statement of changes in shareholder equity; and
(D) statement of changes in financial position.
(8) If the applicant is a wholly owned subsidiary of:
(A) a corporation publicly traded in the United States,
financial statements for the current year or the parent
corporation's Form 10K reports filed with the United States
Securities and Exchange Commission for the preceding three
(3) years may be submitted with the applicant's unaudited
financial statements; or
(B) a corporation publicly traded outside the United States,
similar documentation filed with the parent corporation's
non-United States regulator may be submitted with the
applicant's unaudited financial statements.
(9) Copies of filings, if any, made by the applicant with the
United States Securities and Exchange Commission, or with a
similar regulator in a country other than the United States, not
more than one (1) year before the date of filing of the
application.
As added by P.L.42-1993, SEC.85. Amended by P.L.213-2007,
SEC.77; P.L.217-2007, SEC.75.
IC 28-8-4-26
Contents of noncorporate license applications
Sec. 26. In addition to the items listed in section 24 of this
chapter, if the applicant is not a corporation, the applicant must
provide the following:
(1) The:
(A) name;
(B) residence address;
(C) business address;
(D) federal tax returns with schedules for the three (3) years
preceding the date of the application; and
(E) employment history;
for each principal and each person who will be in charge of the
applicant's licensed activities.
(2) Evidence that the applicant is registered or qualified to do
business in Indiana.
(3) The date on which the applicant registered or qualified to do
business in Indiana.
(4) The:
(A) history of material litigation; and
(B) the history of criminal indictments, convictions, and
guilty and nolo contendere pleas for felonies involving
fraud, deceit, or misrepresentation under the laws of Indiana
or any other jurisdiction;
for each individual having an ownership interest in the
applicant, and each individual who exercises supervisory
responsibility with respect to the applicant's activities.
(5) Copies of the applicant's audited financial statements for the
current year and, if available, for the preceding two (2) years,
including a:
(A) balance sheet;
(B) statement of income or loss; and
(C) statement of changes in financial position.
As added by P.L.42-1993, SEC.85. Amended by P.L.213-2007,
SEC.78; P.L.217-2007, SEC.76.
IC 28-8-4-27
Form and amount of security devices
Sec. 27. (a) Except as provided in section 29 of this chapter, an
application must be accompanied by a security device that secures
the faithful performance of the obligations of the licensee to receive,
handle, transmit, and pay money in connection with the:
(1) sale and issuance of payment instruments; or
(2) transmission of money.
(b) The security device required under subsection (a) must:
IC 28-8-4-28
Cancellation of security devices
Sec. 28. (a) The security device provided for in section 27 of this
chapter shall remain in effect until cancellation.
(b) A security device may be canceled not more than thirty (30)
days after written notice is sent by first class mail to the director.
(c) Cancellation of a security device does not affect any liability
incurred or accrued during the period when the security device was
in effect.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-29
Deposits instead of security devices
Sec. 29. (a) In lieu of a security device, the licensee may deposit
with the director, or with banks in the state as the licensee may
designate and the director may approve, one (1) or more of the
following:
(1) Cash.
(2) Interest-bearing stocks and bonds.
(3) Notes.
(4) Debentures.
(5) Other obligations:
(A) of the United States or any agency or instrumentality of
the United States;
(B) guaranteed by the United States;
(C) of the state, a city, a county, a town, a village, a school
district, or an instrumentality of the state; or
(D) guaranteed by the state.
(b) Each item deposited under subsection (a) must be calculated
based on the lesser of:
IC 28-8-4-30
Duration of security devices and deposits; reduction; elimination
Sec. 30. (a) Except as provided in subsection (b), a security device
filed under section 27 of this chapter and a deposit made under
section 29 of this chapter must remain in place:
(1) during the time a licensee engages in money transmission
operations in Indiana; and
(2) for five (5) years after the date a licensee ceases money
transmission operations in Indiana.
(b) Prior to the expiration of the five (5) years in subsection
(a)(2), the director may permit a licensee to:
(1) reduce a security device or a deposit to the amount of the
licensee's outstanding payment instruments that remain in
Indiana; or
(2) eliminate a security device or deposit, if the licensee has no
outstanding payment instruments in Indiana.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-31
Substitution of security devices
Sec. 31. On or after the date when the licensee ceases money
transmission operations in Indiana, the director may permit a licensee
to substitute a letter of credit or other form of security device
acceptable to the director for the security device or deposit.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-32
Application fees
Sec. 32. (a) An application must be accompanied by a
nonrefundable application fee as fixed by the department under
IC 28-11-3-5.
(b) If a license is granted, the application fee constitutes the
license fee for the applicant's activities through December 31 of the
year in which the initial license is granted.
As added by P.L.42-1993, SEC.85. Amended by P.L.213-2007,
SEC.79; P.L.217-2007, SEC.77.
IC 28-8-4-33
Conduct of business; insurance; permissible investments; good
standing
Sec. 33. (a) A license granted under this chapter permits a licensee
to conduct business:
(1) at one (1) or more locations directly or indirectly owned by
the licensee; or
(2) through one (1) or more authorized delegates.
(b) Each licensee shall maintain a policy of insurance issued by
an insurer authorized to do business in Indiana that insures the
applicant against loss by a criminal act or act of dishonesty. The
principal sum of the policy shall be equivalent to the amount of the
required security device required under section 27 of this chapter or
deposit required under section 29 of this chapter.
(c) Except as provided in subsection (d), a licensee must at all
times possess permissible investments with an aggregate market
value calculated in accordance with generally accepted accounting
principles of not less than the aggregate face amount of all
outstanding payment instruments issued or sold by the licensee or an
authorized delegate of the licensee in the United States.
(d) The director may waive the permissible investments
requirement in subsection (c) if the dollar volume of a licensee's
outstanding payment instruments does not exceed:
(1) the security device posted by the licensee under section 27
of this chapter; or
(2) the deposit made by the licensee under section 29 of this
chapter.
(e) A licensee that is a corporation must at all times be in good
standing with the secretary of state of the state in which the licensee
was incorporated.
As added by P.L.42-1993, SEC.85. Amended by P.L.73-2004,
SEC.39.
IC 28-8-4-34
Commonly controlled corporations
Sec. 34. The director may permit corporations that are directly or
indirectly commonly controlled to engage in activities under this
chapter, pursuant to a security device required under section 27 of
this chapter or a deposit required under section 29 of this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-35
Investigations by director; issuance of licenses; controlling
persons; denial of applications
Sec. 35. (a) The director shall begin an investigation after an
application is complete.
IC 28-8-4-36
Contesting denial of license applications
Sec. 36. (a) An applicant that is denied a license under section
35(f) of this chapter may, not more than thirty (30) days after receipt
of written notice of the denial, contest the denial by serving a
response on the director.
(b) The serving of a response on the director automatically stays
the denial of the license until a final ruling in the hearing is
announced.
(c) The director shall set a date for a hearing not less than sixty
(60) days after service of the response. A later date may be set with
the denied applicant's consent.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-37
License renewal fees
Sec. 37. The department shall fix an annual fee for renewal of a
license under IC 28-11-3-5. The annual fee shall be paid on or before
March 31 of each year.
As added by P.L.42-1993, SEC.85. Amended by P.L.213-2007,
SEC.80; P.L.217-2007, SEC.78.
IC 28-8-4-38 Version a
Renewal of licenses; annual report; renewal fee; license suspension
Note: This version of section effective until 7-1-2007. See also
following version of this section, effective 7-1-2007.
Sec. 38. (a) A licensee may renew a license by complying with the
following:
(1) Filing with the director the annual report in the form that is
prescribed by the director and sent by the director to each
licensee not less than three (3) months immediately preceding
the date established by the director for license renewal. The
report must include:
(A) either:
(i) a copy of the licensee's most recent audited
consolidated annual financial statement, including a
balance sheet, a statement of income or loss, a statement
of changes in shareholder's equity, and a statement of
changes in financial position; or
(ii) if the licensee is a wholly owned subsidiary, the
consolidated audited annual financial statement of the
parent corporation filed with the licensee's unaudited
annual financial statement;
(B) the number of payment instruments sold by the licensee
in Indiana, the dollar amount of those instruments, and the
dollar amount of outstanding payment instruments sold by
the licensee calculated from the most recent quarter for
which data is available before the date of the filing of the
renewal application, but in no event more than one hundred
twenty (120) days before the renewal date;
(C) material changes to the information submitted by the
licensee on its original application that have not been
reported previously to the director on any other report
required to be filed under this chapter;
(D) a list of the licensee's permissible investments; and
(E) a list of the locations within Indiana at which business
regulated by this chapter will be conducted by either the
licensee or its authorized delegate, including information
concerning any business, other than the business of money
transmission under this chapter, that will be conducted at
each identified location, as required under section 24(10) of
this chapter.
(2) Paying the annual renewal fee described under section 37 of
this chapter.
(b) A licensee that:
(1) does not file a renewal report or pay the renewal fee by the
renewal filing deadline set by the director; and
(2) has not been granted an extension of time to do so by the
director;
shall be notified by the director, in writing, that a hearing will be
scheduled at which the licensee will be required to show cause why
its license should not be suspended pending compliance with these
requirements. If after the hearing the license is not suspended, the
director may require a daily late fee beginning with the date the
renewal report or annual renewal fee is required by this chapter in an
amount fixed by the department under IC 28-11-3-5.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.58
and P.L.57-2006, SEC.58; P.L.1-2007, SEC.188.
IC 28-8-4-38 Version b
Renewal of licenses; annual report; renewal fee; license suspension
Note: This version of section effective 7-1-2007. See also
preceding version of this section, effective until 7-1-2007.
Sec. 38. (a) A licensee may renew a license by complying with the
following:
(1) Filing with the director the annual report in the form that is
prescribed by the director and sent by the director to each
licensee not less than three (3) months immediately preceding
the date established by the director for license renewal. The
report must include the following:
(A) Either:
(i) a copy of the licensee's most recent audited
consolidated annual financial statement, including a
balance sheet, a statement of income or loss, a statement
of changes in shareholder's equity, and a statement of
changes in financial position; or
(ii) if the licensee is a wholly owned subsidiary, the parent
corporation's most recent consolidated audited annual
financial statement or the parent corporation's Form 10K
reports filed with the Securities and Exchange
Commission for the previous three (3) years, along with
the licensee's unaudited annual financial statement.
A financial statement required to be submitted under this
clause must be prepared by a certified public accountant
authorized to do business in the United States in accordance
with AICPA Statements on Standards for Accounting and
Review Services (SSARS). A financial statement not
covering the immediately preceding twelve (12) month
period is not considered the most recent statement for
purposes of license renewal under this section.
(B) The number of payment instruments sold by the licensee
in Indiana, the dollar amount of those instruments, and the
dollar amount of outstanding payment instruments sold by
the licensee calculated from the most recent quarter for
which data is available before the date of the filing of the
renewal application, but in no event more than one hundred
twenty (120) days before the renewal date.
(C) Material changes to the information submitted by the
licensee on its original application that have not been
reported previously to the director on any other report
required to be filed under this chapter.
(D) A list of the licensee's permissible investments.
(E) A list of the locations within Indiana at which business
regulated by this chapter will be conducted by either the
licensee or its authorized delegate, including information
concerning any business, other than the business of money
transmission under this chapter, that will be conducted at
each identified location, as required under section 24(10) of
this chapter.
(2) Paying the annual renewal fee described under section 37 of
this chapter.
(b) A licensee that:
(1) does not:
(A) file:
(i) a renewal report; or
(ii) any financial statements required by subsection
(a)(1)(A);
by the renewal filing deadline set by the director; or
(B) pay the renewal fee by March 31 of each year; and
(2) has not been granted an extension of time by the department
to meet the requirements described in subdivision (1);
shall be notified by the department, in writing, that a hearing will be
scheduled at which the licensee will be required to show cause why
its license should not be suspended pending compliance with these
requirements. If after the hearing the license is not suspended, the
department shall require a daily late fee beginning with the date the
renewal report, the financial statements, or the annual renewal fee is
required by this chapter in an amount fixed by the department under
IC 28-11-3-5.
(c) The director may, for good cause shown, waive any
requirement of this section.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.58
and P.L.57-2006, SEC.58; P.L.1-2007, SEC.188; P.L.213-2007,
SEC.81; P.L.217-2007, SEC.79.
IC 28-8-4-39
Written reports following bankruptcies or reorganizations, license
revocations or suspensions, and felony indictments and convictions
Sec. 39. A licensee shall file a written report with the director not
later than fifteen (15) days after the occurrence of one (1) or more of
the following events:
(1) The filing for bankruptcy or reorganization by the licensee.
(2) The institution of revocation or suspension proceedings
against the licensee by a state or governmental authority with
regard to the licensee's money transmission activities.
(3) A felony indictment of the licensee or of a key officer or
director of the licensee related to money transmission activities.
(4) A felony conviction of the licensee or a key officer or
director of the licensee related to money transmission activities.
The written report must give details concerning the event.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-40
Reporting changes of control and acquisitions
Sec. 40. (a) A change of control or an acquisition of a licensee
that is:
(1) a publicly traded corporation; or
(2) a direct or an indirect subsidiary of a publicly traded
corporation;
must be reported to the director in writing not later than fifteen (15)
days after the change in control or the acquisition.
(b) A change in control or an acquisition of a licensee that is not:
(1) a publicly traded corporation; or
(2) a direct or an indirect subsidiary of a publicly traded
corporation;
must be reported to the director in writing not later than thirty (30)
days before the change of control or the acquisition.
(c) Changes in control of a licensee require written notice to the
director. Approval considerations will be made under the terms of
section 35 of this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-40.5
Other business at money transmission locations; notice to
department
Sec. 40.5. (a) This section applies if, after a person has been
issued a license or renewal license under this chapter, any of the
following apply:
(1) Any business, other than the business of money transmission
under this chapter, will be conducted by the licensee or another
person, other than an authorized delegate that is not under
common control with the applicant, at any location in Indiana
in which the licensee conducts the business of money
transmission under this chapter.
(2) Any information concerning other business conducted at the
locations identified in the licensee's application under section
24(10) of this chapter changes.
(b) For each location described in subsection (a)(1) or (a)(2), the
licensee shall provide to the department the information required
under section 24(10) of this chapter with respect to that location:
(1) not later than fifteen (15) days after the other business
begins operating at the location; or
(2) if the licensee's next application for a renewal license under
section 38 of this chapter is due before the date described in
subdivision (1), in the licensee's next application for a renewal
license under section 38 of this chapter.
As added by P.L.10-2006, SEC.59 and P.L.57-2006, SEC.59.
Amended by P.L.213-2007, SEC.82; P.L.217-2007, SEC.80.
IC 28-8-4-41
Onsite examinations
Sec. 41. (a) The director may conduct an annual onsite
examination of a licensee or an authorized delegate of a licensee.
(b) If the director determines that a reasonable belief exists that
a person is operating without a valid license or in violation of this
chapter, the director has the authority to investigate and examine the
records of that person. The person examined must pay the reasonably
incurred costs of the examination.
(c) Except as provided in section 42(a)(2) of this chapter, the
director must give the licensee forty-five (45) days written notice
before conducting an onsite examination.
(d) If the director determines, based on the licensee's financial
statements and past history of operations in Indiana, that an onsite
examination is unnecessary, the director may waive the onsite
examination.
(e) If the director concludes that an onsite examination of a
licensee is necessary, the licensee shall pay all reasonably incurred
costs of such examination in accordance with the fee schedule
adopted under IC 28-11-3-5.
(f) An onsite examination may be conducted in conjunction with
examinations to be performed by representatives of agencies of
another state or states. In lieu of an onsite examination, a director
may accept the examination report of an agency of another state, or
a report prepared by an independent accounting firm. A report
accepted under this subsection shall be considered, for all purposes,
to be an official report of the director.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.60
and P.L.57-2006, SEC.60.
IC 28-8-4-42
Requests for additional financial data; onsite examinations without
notice
Sec. 42. (a) If the director has a reasonable basis to believe that a
licensee or an authorized delegate of a licensee is in violation of this
chapter, the director may:
(1) request financial data from the licensee in addition to that
required under section 38(a)(1) of this chapter; or
(2) conduct an in-state, onsite examination of an authorized
delegate's operation or a licensee's location without prior notice
to the authorized delegate or licensee.
(b) All reasonable costs of an examination incurred under
subsection (a)(2) shall be paid by the:
(1) authorized delegate whose operation is examined; or
(2) the licensee whose location is examined.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-43
Making, keeping, and preserving records
Sec. 43. A licensee shall make, keep, and preserve the following
for three (3) years:
(1) A record or records of payment instruments sold.
(2) A general ledger containing all asset, liability, capital
income, and expense accounts for which a general ledger shall
be posted at least monthly.
(3) Settlement sheets, if received from authorized delegates.
(4) Bank statements and bank reconciliation records.
(5) Records of outstanding payment instruments.
(6) Records of each payment instrument paid within the three
(3) years.
(7) A list of the names and addresses of all of the licensee's
authorized delegates, as well as a copy of each authorized
delegate's contract.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-44
Maintenance and availability of records
Sec. 44. (a) The records maintained under section 43 of this
chapter shall be:
(1) maintained in conformity with generally accepted
accounting principles and practices in a manner that will enable
the director to determine whether the licensee is complying with
the provisions of this chapter; and
(2) made reasonably available to the director.
(b) The director shall determine the sufficiency of the records and
whether the licensee has made the required information reasonably
available.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-45
Maintenance of records at foreign locations
Sec. 45. Records maintained under section 43 of this chapter may
be maintained at a location that is outside Indiana if the records are
made accessible to the director after the director has given fifteen
(15) days written notice.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-46
Compliance with money laundering laws; investigation and
enforcement by department
Sec. 46. (a) The licensee or an authorized delegate shall comply
with all state and federal money laundering statutes and regulations,
including the following:
(1) The Bank Secrecy Act (31 U.S.C. 5311 et seq.).
(2) The USA Patriot Act of 2001 (P.L. 107-56).
(3) Any regulations, policies, or reporting requirements
established by the Financial Crimes Enforcement Network of
the United States Department of the Treasury.
(4) Any other state or federal money laundering statutes or
regulations that apply to a licensee or an authorized delegate.
(b) The department shall do the following:
(1) To the extent authorized or required by state law, investigate
potential violations of, and enforce compliance with, state
money laundering statutes or regulations.
(2) Investigate potential violations of federal money laundering
statutes or regulations and, to the extent authorized or required
by federal law:
(A) enforce compliance with the federal statutes or
regulations; or
(B) refer suspected violations of the federal statutes or
regulations to the appropriate federal regulatory agencies.
As added by P.L.42-1993, SEC.85. Amended by P.L.10-2006, SEC.61
and P.L.57-2006, SEC.61.
IC 28-8-4-47
Confidentiality of information
Sec. 47. (a) Notwithstanding any other provision of law, all
information or reports obtained by the director from an applicant, a
licensee, or an authorized delegate, whether obtained through
reports, applications, examination, audits, investigation, or otherwise,
including:
IC 28-8-4-48
Suspension and revocation of licenses
Sec. 48. (a) After notice and hearing, the director may suspend or
revoke a licensee's license if the director finds one (1) of the
following conditions:
(1) A fact or condition exists that, if it had existed at the time
the licensee applied for a license, would have been grounds for
denying the application.
(2) The licensee's net worth becomes inadequate to meet the
terms of sections 24 and 33 of this chapter and the licensee,
after ten (10) days written notice from the director, fails to take
steps that the director considers necessary to remedy the
deficiency.
(3) The licensee violates a material provision of this chapter or
order validly promulgated by the director under authority of this
chapter.
(4) The licensee is conducting its business in an unsafe or
unsound manner as determined by the director.
(5) The licensee is insolvent.
(6) The licensee has suspended payment of its obligations, has
made an assignment for the benefit of its creditors, or has
admitted in writing its inability to pay its debts as they become
due.
(7) The licensee has applied for an adjudication of bankruptcy,
reorganization, arrangement, or other relief under the federal
bankruptcy code.
(8) The licensee refuses to permit the director to make any
examination authorized by this chapter.
(9) The licensee fails to make a report required by this chapter.
(b) If the director of the department:
(1) has just cause to believe an emergency exists from which it
is necessary to protect the interests of the public; or
(2) determines that the license was obtained for the benefit of,
or on behalf of, a person who does not qualify for a license;
the director may proceed with the revocation of the license under
IC 4-21.5-3-6.
As added by P.L.42-1993, SEC.85. Amended by P.L.80-1998,
SEC.20.
IC 28-8-4-48.1
Failure to file renewal form or pay renewal fee
Sec. 48.1. (a) A license issued by the department under this
chapter shall be revoked by the department if the person fails to:
(1) file any renewal form required by the department; or
(2) pay any license renewal fee described under section 37 of
this chapter;
for a period of at least two (2) years.
(b) A person whose license is revoked under this section may:
(1) pay all delinquent fees and apply for a new license; or
(2) appeal the revocation to the department for an
administrative review under IC 4-21.5-3. Pending the decision
resulting from the hearing under IC 4-21.5-3 concerning the
license revocation, the license remains in force.
As added by P.L.176-1996, SEC.24.
IC 28-8-4-49
Authorized delegates
Sec. 49. Licensees desiring to conduct licensed activities through
authorized delegates shall authorize each delegate to operate
pursuant to an express written contract, which shall provide for the
following:
(1) That the licensee appoints the person as its delegate with
authority to sell payment instruments and accept funds to be
transmitted by or on behalf of the licensee.
(2) That neither a licensee nor an authorized delegate may
authorize a subdelegate without the written consent of the
director.
(3) That licensees are subject to supervision and regulation by
the director.
(4) An acknowledgment that the authorized delegate consents
to the director's inspection, with or without prior notice to the
licensee or authorized delegate, of the books, records, and
accounts of an authorized delegate of the licensee when the
director has a reasonable basis to believe that the licensee or
authorized delegate is in violation of this chapter.
(5) That authorized delegates are under a duty to act only as
authorized under the contract with the licensee and that an
authorized delegate who exceeds the delegate's authority is
subject to cancellation of the delegate's contract and
disciplinary action by the director.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-50
Compliance by authorized delegates
Sec. 50. (a) An authorized delegate may not make any fraudulent
or false statement or misrepresentation to a licensee or to the
director.
(b) An authorized delegate must comply with the following:
(1) All money transmission or sale or issuance of payment
instrument activities conducted by an authorized delegate shall
be strictly in accordance with the licensee's written procedures
provided to the authorized delegate.
(2) An authorized delegate shall remit all money owing to the
licensee in accordance with the terms of the contract between
the licensee and the authorized delegate. The failure of an
authorized delegate to remit all money owing to a licensee
within the time presented shall result in liability of the
authorized delegate to the licensee for three (3) times the
licensee's actual damages.
(3) All funds, less fees, received by an authorized delegate of a
licensee from the sale or delivery of a payment instrument
issued by a licensee or received by an authorized delegate for
transmission shall, from the time the funds are received by the
authorized delegate until the funds or an equivalent amount are
remitted by the authorized delegate to the licensee, constitute
trust funds owned by and belonging to the licensee. If an
authorized delegate commingles any of the funds with any other
funds or property owned or controlled by the authorized
delegate, all commingled proceeds and other property shall be
impressed with a trust in favor of the licensee in an amount
equal to the amount of the proceeds due the licensee.
(4) An authorized delegate shall report to the licensee the theft
or loss of payment instruments not more than twenty-four (24)
hours after the time the authorized delegate knew or should
have known of the theft or loss.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-51
Suspension and barring of authorized delegates
Sec. 51. (a) If, after notice and a hearing, the director finds that an
authorized delegate of a licensee or a director, an officer, an
employee, or a controlling person of the authorized delegate:
(1) has violated any provision of this chapter or order issued
under this chapter;
IC 28-8-4-52
Hearing procedure
Sec. 52. The provisions of IC 4-21.5 shall apply to any hearing
afforded under this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-53
Civil penalties
Sec. 53. (a) If, after notice and a hearing conducted in accordance
with IC 4-21.5, the director finds that a person has violated this
chapter, the director may order the person to pay to the director a
civil penalty in an amount specified by the director, not to exceed
one thousand dollars ($1,000) for each violation.
(b) If, after notice and a hearing conducted in accordance with
IC 4-21.5, the director finds that a person is engaged in a continuing
violation of this chapter, the director may order the person to pay to
the director a civil penalty in an amount specified by the director, not
to exceed the greater of:
(1) one thousand dollars ($1,000) for each day that the violation
continues; or
(2) fifty thousand dollars ($50,000).
The provisions of IC 4-21.5 shall apply to such hearing.
(c) A penalty collected under this section shall be deposited into
the financial institutions fund established by IC 28-11-2-9.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-54
Claims against licensees and authorized delegates
Sec. 54. A claim against a licensee or its authorized delegate may
be brought by:
(1) the claimant filing suit against the security device provided
for in section 27 of this chapter or the deposit provided for in
section 29 of this chapter; or
(2) the director filing suit on behalf of a claimant, in one (1)
action or in successive actions.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-55
Compromise, settlement, and collection of civil penalties
Sec. 55. The director, in the exercise of reasonable judgment, is
authorized to compromise, settle, and collect civil penalties from a
person for a violation of:
(1) a provision of this chapter; or
(2) an order issued or promulgated pursuant to this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-56
Injunctions
Sec. 56. If it appears to the director that a person has committed
or is about to commit a violation of a provision of this chapter or an
order of the director, the director may apply to a court having
jurisdiction for:
(1) an order enjoining such person from violating or continuing
to violate this chapter or such other order as the nature of the
case may require; or
(2) injunctive or such other relief as the nature of the case may
require.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-57
Consent orders
Sec. 57. (a) The director may enter into a consent order with a
person to resolve a matter arising under this chapter.
(b) A consent order must comply with the following provisions:
(1) Be signed by the person to whom it is issued or an
authorized representative.
(2) Indicate agreement to the terms contained within the
consent.
(c) A consent order need not:
(1) constitute an admission by a person that a provision of this
chapter or an order promulgated or issued thereunder has been
violated; or
(2) constitute a finding by the director that such person has
violated a provision of this chapter or an order promulgated or
issued thereunder.
(d) Notwithstanding the issuance of a consent order, the director
may seek civil or criminal penalties or compromise civil penalties
concerning matters encompassed by the consent order, unless the
consent order by its terms expressly precludes the director from
doing so.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-58
Violations
Sec. 58. (a) A person who knowingly or intentionally violates a
provision of this chapter for which a penalty is not specifically
provided commits a Class A misdemeanor.
(b) A person who knowingly or intentionally makes a material,
false statement in a document filed or required to be filed under this
chapter, with the intent to deceive the recipient of the document,
commits a Class C felony.
(c) A person who knowingly or intentionally fails to file a
document required to be filed under this chapter commits a Class C
felony.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-59
Rules and regulations
Sec. 59. (a) Rules and regulations promulgated by the director
pursuant to authority conferred by this chapter will be pursuant to
IC 4-22-2.
(b) At the time the director files a notice of proposed adoption,
amendment, or repeal of a rule for public comment under this
chapter, a copy of the notice will be sent by first class mail postage
prepaid to all then current licensees and applicants for licenses under
this chapter.
As added by P.L.42-1993, SEC.85.
IC 28-8-4-60
Jurisdiction
Sec. 60. A licensee, an authorized delegate, or a person who
knowingly engages in business activities that are regulated under this
chapter, with or without filing an application, is considered to have
consented to the jurisdiction of the courts of Indiana for all actions
arising under this chapter.
As added by P.L.42-1993, SEC.85.