Sec. 8. (a) A financial institution may not establish, control, or hold an interest of a financial subsidiary that engages in financial subsidiary activities as principal or commence any new financial subsidiary activity under this section or under 12 U.S.C. § 1831w(a) unless the following occur:

(1) An application has been filed with the department before the financial subsidiary of the financial institution conducts financial subsidiary activities.

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Terms Used In Indiana Code 28-13-17-8

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • control: has the meaning set forth in IC 28-2-13-12. See Indiana Code 28-13-17-4
  • financial institution: has the meaning set forth in IC 28-13-16-3. See Indiana Code 28-13-17-1
  • financial subsidiary: means a foreign or domestic corporation or limited liability company that is controlled by one (1) or more financial institutions that engages in a financial subsidiary activity. See Indiana Code 28-13-17-2
  • financial subsidiary activity: means :

    Indiana Code 28-13-17-3

  • hold an interest: means the ownership of any equity capital of a financial subsidiary. See Indiana Code 28-13-17-5
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
(2) The department determines that the financial subsidiary activity poses no significant adverse effects to the safety and soundness of the financial institution and approves the application. An approval under this subdivision may be made subject to conditions and restrictions determined necessary by the department to prevent unsafe or unsound banking practices.

(3) The financial institution and the financial subsidiary comply with 12 U.S.C. § 371c and 12 U.S.C. §§ 371c–1, as if the subsidiary were a financial subsidiary, as defined in 12 U.S.C. § 371c(e)(1).

(4) All financial institution affiliates of the financial institution are well-capitalized, as defined in the appropriate capital regulation and guidance of each financial institution’s primary federal regulator, and the financial institution complies with the capital deduction requirement in accordance with 12 C.F.R. § 362.4(e)(1) through 12 C.F.R. § 362.4(e)(3), discloses that capital separation in any published financial statements and does not consolidate the financial subsidiary’s assets and liabilities with those of the financial institution in any published financial statements.

(5) The financial institution and the financial subsidiary meet the financial and operational safeguards applicable to a financial subsidiary of a national bank conducting the same activities as provided in 12 U.S.C. § 24a(d).

     (b) A financial institution that controls or holds an interest in a financial subsidiary engaged in a financial subsidiary activity must comply with the requirements of subsection (a)(2) through (a)(5), as long as the financial institution’s financial subsidiary is engaged in the financial subsidiary activity.

As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.

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