Section 24-4.4-2-404.1 - Violations by individuals; persons convicted of felonies; civil penalties; creditor's duty to notify department of discharge or termination(1) If the director determines that a current or former director, an officer, or a manager of a creditor: (a) has committed a violation of a statute, a rule, a final cease and desist order, any condition imposed in writing by the director in connection with the granting of any application or other request by the creditor, or any written agreement between the creditor and the director or the department;(b) has committed fraudulent or unconscionable conduct; or(c) has been convicted of a felony under the laws of Indiana or any other jurisdiction; the director, subject to subsection (2), may issue and serve upon the officer, director, or manager a notice of the director's intent to issue an order removing the person from the person's office or employment, an order prohibiting any participation by the person in the conduct of the affairs of any creditor, or an order both removing the person and prohibiting the person's participation.
(2) A violation, practice, or breach specified in subsection (1) is subject to the authority of the director under subsections (1) and (3) if the director finds any of the following: (a) The interests of the creditor's customers could be seriously prejudiced by reason of the violation or practice.(b) The violation, practice, or breach involves an act of fraud, dishonesty, theft, breach of trust, money laundering, or the wrongful taking of property on the part of the officer, director, or manager involved.(c) The violation, practice, or breach demonstrates a willful or continuing disregard by the officer, director, or manager for state and federal laws and regulations, and for the consumer protections contained in this article.(3) A person who has been convicted of a felony under the laws of Indiana or any other jurisdiction may not serve as an officer, a director, or a manager of a creditor, or serve in any similar capacity, unless the person obtains the written consent of the director.(4) A creditor that willfully permits a person to serve the creditor in violation of subsection (3) is subject to a civil penalty of five hundred dollars ($500) for each day the violation continues.(5) A creditor shall give the department written notice of the resignation, discharge, or termination of an employee, independent contractor, or agent against whom allegations were made that accused the employee, independent contractor, or agent of:(a) violating this article or other laws, regulations, rules, or industry standards of conduct applicable to first lien mortgage transactions; or(b) fraud, dishonesty, theft, breach of trust, money laundering, or the wrongful taking of property. The creditor shall provide the department the notice required under this subsection not later than thirty (30) days after the effective date of the resignation, discharge, or termination.
Amended by P.L. 176-2019,SEC. 5, eff. 7/1/2019.Amended by P.L. 27-2012, SEC. 11, eff. 7/1/2012.As added by P.L. 35-2010, SEC.19.