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IC 28-8-5-1
Application of chapter
Sec. 1. (a) This chapter does not apply to a financial institution
organized under IC 28 or federal law.
(b) This chapter does not apply to persons engaged in the business
of cashing checks if:
(1) the transaction is incidental to the retail sale of goods or
services; and
(2) consideration (as defined in section 3 of this chapter) for
cashing checks does not exceed the greater of:
(A) two percent (2%) of the face amount of the check; or
(B) two dollars ($2).
As added by P.L.42-1993, SEC.86. Amended by P.L.122-1994,
SEC.104; P.L.213-2007, SEC.85; P.L.217-2007, SEC.83.
IC 28-8-5-2
Check or checks
Sec. 2. As used in this chapter, "check" or "checks" includes a
check, draft, money order, or personal money order.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-2.5
Check cashing transaction
Sec. 2.5. As used in this chapter, "check cashing transaction"
means a transaction under this chapter in which there is no written or
implied agreement to hold the check for more than three (3) business
days.
As added by P.L.80-1998, SEC.21.
IC 28-8-5-3
Consideration
Sec. 3. As used in this chapter, "consideration" includes a
premium charged for the sale of goods or services in excess of the
cash price of the sale of such goods or services.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-4
Department
Sec. 4. As used in this chapter, "department" means the members
of the department of financial institutions.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-5
Incidental to the retail sale of goods or services
Sec. 5. As used in this chapter, "incidental to the retail sale of
goods or services" means payment for the sale of goods or services,
provided check cashing services are not advertised, announced, or
otherwise promoted as a service separate and apart from the retail
sale.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-6
Licensed casher of checks
Sec. 6. As used in this chapter, "licensed casher of checks" means
a person licensed by the department to engage in business pursuant
to the provisions of this chapter.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-7
Licensee
Sec. 7. As used in this chapter, "licensee" means a licensed casher
of checks.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-8
Location
Sec. 8. As used in this chapter, "location" means a fixed or
ambulatory place of business approved by the department.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-9
Person
Sec. 9. 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.86.
IC 28-8-5-10
Resolutions for administration of chapter
Sec. 10. The department may make regulations and establish
policies and guidelines by resolution for the administration of this
chapter.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-11
License required; application; other business at check cashing
locations; application fee
Sec. 11. (a) A person shall not engage in the business of cashing
checks for consideration without first obtaining a license.
(b) Each application for a license shall be in writing in such form
as the director may prescribe and shall include all of the following:
(1) The following information pertaining to the applicant:
(A) Name.
(B) Residence address.
(C) Business address.
(2) The following information pertaining to corporate directors
of the applicant, officers of the applicant, owners of the
applicant (if a proprietorship), and partners of the applicant, if
applicable:
(A) Name.
(B) Residence address.
(C) Business address.
(D) Whether the person:
(i) is, at the time of the application, under indictment for
a felony involving fraud, deceit, or misrepresentation
under the laws of Indiana or any other jurisdiction; or
(ii) has been convicted of or pleaded guilty or nolo
contendere to a felony involving fraud, deceit, or
misrepresentation under the laws of Indiana or any other
jurisdiction.
(3) The address where the applicant's office or offices will be
located. If any business, other than the business of cashing
checks under this chapter, will be conducted by the applicant or
another person at any of the locations identified under this
subdivision, the applicant shall indicate for each location at
which another business will be conducted:
(A) the nature of the other business;
(B) the name under which the other business operates;
(C) the address of the principal office of the other business;
(D) the name and address of the business's resident agent in
Indiana; and
(E) any other information that the director may require.
(4) Such other data, financial statements, and pertinent
information as the director may require.
(c) The application shall be filed with a nonrefundable fee fixed
by the department under IC 28-11-3-5.
As added by P.L.42-1993, SEC.86. Amended by P.L.122-1994,
SEC.105; P.L.10-2006, SEC.62 and P.L.57-2006, SEC.62;
P.L.213-2007, SEC.86; P.L.217-2007, SEC.84.
IC 28-8-5-12
Issuance and refusal of licenses; evidence of compliance
Sec. 12. (a) The department shall determine the financial
responsibility, business experience, character, and general fitness of
the applicant before issuing the license.
(b) The department may refuse to issue a license if:
(1) an applicant who is an individual has been convicted of a
felony involving fraud, deceit, or misrepresentation under the
laws of Indiana or any other jurisdiction; or
(2) the application was submitted for the benefit of, or on behalf
of, a person who does not qualify for a license.
(c) The director of the department may request evidence of
compliance with this section by the licensee at:
(1) the time of application;
(2) the time of renewal of the licensee's 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.86. Amended by P.L.80-1998,
SEC.22; P.L.63-2001, SEC.21 and P.L.134-2001, SEC.23;
P.L.10-2006, SEC.63 and P.L.57-2006, SEC.63; P.L.213-2007,
SEC.87; P.L.217-2007, SEC.85.
IC 28-8-5-13
Licenses not transferable or assignable
Sec. 13. A license is not transferable or assignable.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-14
Expiration of licenses
Sec. 14. A license issued pursuant to this chapter expires on July
1 of the year following the date of issuance unless earlier
surrendered, suspended, or revoked.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-15
Renewal of licenses
Sec. 15. A license may be renewed for twelve (12) months upon
the filing of a renewal application. Each licensee shall pay to the
department before July 1 of each year a fee fixed by the department
under IC 28-11-3-5 as a renewal fee. The department may fix a daily
late fee under IC 28-11-3-5 for a renewal license that is not received
before July 1.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-16
Check cashing requirements
Sec. 16. (a) A licensee must do the following:
(1) Conspicuously display at each place of business a notice to
the public stating the maximum charges for cashing checks.
(2) Make payment to a customer for whom a check is being
cashed upon presentment of the check.
(3) Endorse the name in which the licensee is licensed on all
checks before depositing them in a financial institution.
(4) Cash a check made payable only to a natural person as
payee unless the licensee has previously obtained appropriate
documentation from a payee clearly indicating the authority of
the natural person or persons cashing the check on behalf of the
payee.
(b) If a licensee engages in a check cashing transaction in which
the amount on the check is at least three thousand dollars ($3,000) or
in which the sum of the amounts on two (2) or more checks from the
same customer on the same day total at least three thousand dollars
($3,000), the licensee must obtain:
(1) the thumbprint of the customer or a photograph of both the
customer and the check;
(2) the full name of the customer;
(3) the residence address of the customer; and
(4) the identification of the customer by:
(i) Social Security number;
(ii) driver's license number;
(iii) passport number; or
(iv) other traceable record.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-17
Check cashing fee limitations
Sec. 17. (a) Except as otherwise provided in this chapter, a
licensee may not charge check cashing fees in excess of:
(1) the greater of ten dollars ($10) or ten percent (10%) of the
face amount of a check, in the case of a personal check; or
(2) the greater of five dollars ($5) or five percent (5%) of the
face amount of a check, in the case of all other checks.
(b) Except as provided in this chapter, a licensee or the licensee's
agent may not accept multiple checks from a:
(1) person;
(2) person's spouse; or
(3) person's agent;
drawn on the person's account with the intent that the licensee may
collect multiple or increased fees for cashing the checks.
As added by P.L.42-1993, SEC.86. Amended by P.L.80-1998,
SEC.23; P.L.213-2007, SEC.88; P.L.217-2007, SEC.86.
IC 28-8-5-18
Keeping books, accounts, and records
Sec. 18. (a) A licensee shall keep its books, accounts, and records
satisfactory to the department for each transaction for at least three
(3) years from the transaction date.
(b) A licensee shall keep its books, accounts, and records separate
from those of any other type of business and in a manner that reflects
the order of the licensee's transactions.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-18.3
Other business at check cashing locations; notice to department
Sec. 18.3. (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 cashing checks
under this chapter, will be conducted by the licensee or another
person at any location in Indiana in which the licensee conducts
the business of cashing checks under this chapter.
IC 28-8-5-18.5
Checks drawn on valid accounts and deposited with intent to draw
funds
Sec. 18.5. The check in a check cashing transaction, to the best of
the licensee's knowledge, must be drawn on a valid, open, and active
account and must be deposited by the licensee into a financial
institution with the intent to draw the funds of that check.
IC 28-8-5-19
Examination of books, accounts, and records; investigations; costs
of examination
Sec. 19. (a) The department may examine the books, accounts,
and records of a licensee and may make investigations to determine
compliance.
(b) If the department examines the books, accounts, and records
of a licensee, the licensee shall pay all reasonably incurred costs of
the examination in accordance with the fee schedule adopted under
IC 28-11-3-5.
As added by P.L.42-1993, SEC.86. Amended by P.L.10-2006, SEC.65
and P.L.57-2006, SEC.65.
IC 28-8-5-20
Investigation procedures
Sec. 20. In making investigations concerning the compliance of a
licensee the department may:
(1) administer oaths;
(2) subpoena witnesses; and
(3) require the production of:
(i) books, documents, or other tangible items; and
(ii) information pertaining to the identity of and location of
persons having knowledge of facts concerning compliance
with this chapter.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-21
Examination of records located outside Indiana
Sec. 21. If the licensee's records are located outside Indiana, the
licensee shall either make them available to the department at a
convenient location within Indiana or pay the reasonable and
necessary expenses for the department or its representative to
examine them at the place where they are maintained.
As added by P.L.42-1993, SEC.86.
IC 28-8-5-22
Suspension and revocation of licenses
Sec. 22. (a) The department may suspend or revoke a license
issued under this chapter pursuant to the provisions in IC 4-21.5 for:
(1) violating this chapter; or
(2) any reason that would be sufficient to deny an initial
application for a license.
(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.86. Amended by P.L.176-1996,
SEC.25; P.L.80-1998, SEC.25.
IC 28-8-5-22.5
Failure to file renewal form or pay renewal fee
Sec. 22.5. (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 15 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.26.
IC 28-8-5-23
Investigations; void check cashing transactions
Sec. 23. (a) If the department determines that a reasonable belief
exists that a person is operating without a valid license or in violation
of this chapter, the department may investigate the person.
(b) If a person knowingly acts as a casher of checks without the
license required by section 12 of this chapter, the check cashing
transaction is void and the customer is not required to pay any check
cashing fees to the person. If the customer has paid any check
cashing fees to the person, the customer, or the department on behalf
of the customer, is entitled to recover the payment from the person.
As added by P.L.42-1993, SEC.86. Amended by P.L.172-1997,
SEC.24.
IC 28-8-5-24
Civil penalties
Sec. 24. (a) The department may bring a civil action against a
person for violating this chapter.
(b) If the court finds that the defendant is guilty of an offense
under subsection (a), the court may assess a civil penalty not to
exceed five thousand dollars ($5,000) per violation.
(c) Civil penalties 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.86.
IC 28-8-5-24.5
Compliance with money laundering laws; investigation and
enforcement by department
Sec. 24.5. (a) A licensee shall comply with all state and federal
money laundering statutes and regulations, including the following:
IC 28-8-5-25
Violations
Sec. 25. A licensee who violates the provisions of this chapter
commits a Class A misdemeanor.
As added by P.L.42-1993, SEC.86.