in-20240424-IR-750230837FRA: The Indiana Department of Financial Institutions (DFI) is soliciting public comment on adding rules at 750 IAC 10 concerning the institutions regulated by the DFI, and adding the calculation of fees and civil penalties. The DFI seeks comment on the affected citations listed and any other provisions of Title 750 that may be affected by this rulemaking. Effective 30 days after filing with the publisher.

Final Rule LSA Document #23-837 DIGEST Sec. 1. (a) This rule applies to financial institutions, persons who commit acts in violation of IC 28, and persons subject to IC 24-4.4-3-101, IC 24-4.5-6-102, IC 24-4.5-7-102, IC 24-7-1-1, IC 24-12-1-0.5, IC 28-1-29-3, IC 28-7-5-3, IC 28-8-4.1-201, and IC 28-8-5-11. (b) For purposes of this article, "financial institution" has the meaning as set forth in IC 28-1-2-30. (c) For purposes of this article, "person" or "persons" has the meaning as set forth in IC 24-4.5-1-301.5(33). Sec. 2. The purpose of this rule is to establish fee schedules for financial institutions. Sec. 3. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for banks, savings banks, building and loan associations, and industrial authorities is as follows: (b) For purposes of this section, "M" means multiply by one thousand (1,000). (c) For purposes of this article, "department" has the meaning as set forth in IC 28-1-1-3(14). Sec. 4. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for trust departments is as follows: (b) For purposes of this section, "M" means multiply by one thousand (1,000). Sec. 5. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for corporate fiduciaries is as follows: (b) For purposes of this section, "M" means multiply by one thousand (1,000). Sec. 6. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for credit unions is as follows: (b) For purposes of this section, "M" means multiply by one thousand (1,000). Sec. 7. (a) If a: (b) If a: Sec. 8. A newly chartered and converted financial institution, which includes thrift and national to state chartered financial institutions, is charged a percentage of its annual fee, as calculated in sections 3 through 6 of this rule, based on the number of months that it is in existence as an Indiana state chartered financial institution during the department's fiscal year. Sec. 9. The fees prescribed in sections 3 through 6 of this rule are due on or before August 1 of each year. Sec. 10. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for the following applications is as follows: (b) The base fees listed in subsection (a) are the minimum amounts charged for an application. Actual expenses are charged at eighty dollars ($80) per hour, or a part thereof, for all personnel involved in processing, analyzing, or investigating an application. Actual expenses also include transcript preparation, administrative law judge fees, and travel expenses for the members of the department and office personnel. If an actual expense exceeds the basic fee for an application, the amount of the actual expense is charged for the application. Actual expenses of an application for a: (c) Financial institutions in the process of voluntary dissolution are not charged an annual fee after the board resolution authorizing the dissolution has been approved by the department under IC 28-1-9-3. (d) Fees are not imposed if an institution involved in an application is insolvent or is in imminent danger of becoming insolvent, as determined by the director. (e) For purposes of this article, "director" has the meaning as set forth in IC 24-4.5-1-301.5(13). Sec. 11. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for the entities below is as follows: (b) If the license and renewal fees under subsection (a) are paid, an exam fee may be offset, with the first one thousand two hundred dollars ($1,200) of the exam fee waived, plus an additional six hundred dollars ($600) of the exam fee waived for each additional location examined. (c) If the total amount owed for the volume fee under this section is one hundred dollars ($100) or less, the volume fee is waived. (d) The mortgage lending license application fee is waived if an applicant's mortgage loan originators are exempt from licensure under 750 IAC 9-3-1(h)(2)(i). Sec. 1. This rule applies to financial institutions, persons who commit acts in violation of IC 28, and persons subject to IC 24-4.4-3-101, IC 24-4.5-6-102, IC 24-4.5-7-102, IC 24-7-1-1, IC 24-12-1-0.5, IC 28-1-29-3, IC 28-7-5-3, IC 28-8-4.1-201, and IC 28-8-5-11. Sec. 2. The purpose of this rule is to set forth standards for the assessment of civil penalties for violations of IC 24-4.4, IC 24-4.5, IC 24-7, IC 24-12, and IC 28. Sec. 3. (a) The department is authorized to assess civil penalties under IC 24-4.4-2-404.4, IC 24-4.4-2-404.6, IC 24-4.4-3-111, IC 24-4.5-6-113, IC 24-4.5-6-122, IC 24-4.5-6-124, IC 24-7-7-1, IC 24-12-5-1, IC 28-1-20-4, IC 28-1-29-13, IC 28-7-5-38.1, IC 28-8-4.1-1105, IC 28-8-5-24, IC 28-11-4-7, and IC 28-11-4-9. (b) The director is authorized to assess civil penalties under IC 24-4.5-4-108, IC 24-4.5-6-122, IC 24-4.5-6-124, and IC 24-4.5-7-404. Sec. 4. The schedule of civil penalties for violations of the following statutes is as follows: Sec. 5. The amount of a civil penalty described in section 4 of this rule may be adjusted downward to reflect mitigating factors. The existence or nonexistence of any factor is not determinative. Factors that may be considered are as follows: (1) The appropriateness of the civil penalty with respect to the financial resources and good faith of a person or an individual charged. (2) Existence of written policies governing the conduct. (3) Cooperation with the department in addressing the violation. (4) A person's history of compliance. (5) Remedial or corrective action taken by a person. (6) Whether the violation was voluntarily disclosed to the department. (7) Evidence of restitution paid. (8) Other factors that justice requires. Sec. 6. The amount of a civil penalty described in section 4 of this rule may be adjusted upward to reflect aggravating factors. The existence or nonexistence of any factor is not determinative. Factors that may be considered are as follows: (1) The gravity of the practice, violation, or act, including: (A) loss or risk of loss to a person; (B) loss or risk of loss to consumers; (C) an impact other than loss; (D) concealment; and (E) the number of violations at issue. (2) The economic benefit derived by an individual from the practice, violation, or act. (3) Willful or intentional misconduct. (4) Duration and frequency of the violation. (5) History of similar prior violations. (6) Fraudulent conduct. (7) Whether the violation negatively impacts the integrity or public trust of financial institutions in the state of Indiana. (8) Other factors justice requires. Sec. 7. The schedule of civil penalties for violations of the following statutes is as follows: Sec. 8. The amount of a civil penalty described under section 7 of this rule may be adjusted downward to reflect mitigating factors. The existence or nonexistence of any factor is not determinative. Factors that may be considered are as follows: (1) The appropriateness of the civil penalty with respect to the financial resources and good faith of a person or an individual charged. (2) Existence of written policies governing the conduct. (3) Cooperation with the department in addressing the violation. (4) A person's history of compliance. (5) Remedial or corrective action taken by a person. (6) Whether the violation was voluntarily disclosed to the department. (7) Evidence of restitution paid. (8) Other factors that justice requires. Sec. 9. The amount of a civil penalty described under section 7 of this rule may be adjusted upward to reflect aggravating factors. The existence or nonexistence of any factor is not determinative. Factors that may be considered are as follows: (1) The gravity of the practice, violation, or act, including: (A) loss or risk of loss to a person; (B) loss or risk of loss to consumers; (C) an impact other than loss; (D) concealment; and (E) the number of violations at issue. (2) The economic benefit derived by a person or an individual from the practice, violation, or act. (3) Willful or intentional misconduct. (4) Duration and frequency of the violation. (5) History of similar prior violations. (6) Fraudulent conduct. (7) Whether the violation negatively impacts the integrity or public trust of financial institutions in the state of Indiana. (8) Other factors justice requires. Sec. 10. Nothing in this rule shall require the department or director to assess a civil penalty for a violation.