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Senate Bill 0222

Senate Bill 0222

ARCHIVE (2004)

Latest Information

DIGEST OF SB222 (Updated February 25, 2004 8:03 pm - DI 84)

Names of banks. Permits the secretary of state to administratively dissolve a business entity whose name contains the term "banc" or "banco" in violation of financial institutions law. (Current law allows the secretary of state to take this action in the case of an entity whose name contains the term "bank".) Permits the use of the word "bank", "banc", or "banco" in the name of a subsidiary of : (1) a bank or trust company; and (2) a bank holding company. Permits the use of the word "bank", "banc", or "banco" in the name of a subsidiary of a savings bank or savings association. Updates references in financial institutions law to conform with federal law. Permits a state chartered financial institution to engage in activities related to a product, a service, or an investment that is available to or offered by national banks domiciled in Indiana. Removes limitations on the amount of public funds that may be deposited in a credit union. (Currently, deposits of public funds are limited to 10% of total credit union assets.) Increases the minimum amount of the bond required for a money transmitter from $100,000 to $200,000 and the maximum amount from $200,000 to $300,000. Increases the insurance coverage required for a money transmitter for criminal or dishonest acts from 50% to 100% of the amount of the money transmitter's security bond or deposit. Provides that state law applies to a state chartered bank, trust company, savings association, savings bank, credit union, corporate fiduciary, or industrial loan and investment company to the same extent it applies to a federally chartered institution of the same type. Establishes administrative procedures governing requests for an exemption from state law due to the preemption of state law as it is applied to federally chartered institutions. Authorizes the director of the department of financial institutions to appoint a person to fill a vacancy on the board of directors of a financial institution under certain circumstances. Makes an investment management or a custody account with a trust company or trust division of a bank with trust powers subject to the uniform act on transfer on death securities. Prohibits a lender from requiring a borrower to obtain hazard insurance in an amount exceeding the replacement value of the improvements on mortgaged property as a condition of receiving or maintaining the mortgage.
    Current Status:
    Passed 2nd reading - 2nd House
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