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Can you summarize IC 28-1-20?
DEPARTMENT OF FINANCIAL INSTITUTIONS > General Provisions Concerning Banks and Trust Companies
Short Summary
The provided legal document content covers various aspects related to banks and trust companies in Indiana. It governs statements of account, dormant accounts, and service and maintenance charges. Depositors are required to exercise due diligence in examining their statements and notify the bank of any errors. Banks, savings banks, and trust companies are allowed to impose reasonable monthly service and maintenance charges on dormant and active accounts. The document also regulates transfers of debt, making them null and void if made after an act of insolvency or with the intention of preferential treatment of creditors. It further addresses naming conventions, investigatory and enforcement powers of the Department of Financial Institutions, penalties, and regulations related to marketing materials and solicitations. The use of certain words in the name or title of a person, firm, limited liability company, or corporation is prohibited if it creates a substantial likelihood of misleading the public. Advertising or representing oneself as a bank or trust company, or providing services exclusive to banks or trust companies, is also prohibited. Exemptions are provided for specific financial institutions and out-of-state financial institutions insured by the Federal Deposit Insurance Corporation. The Department of Financial Institutions is granted investigatory and enforcement powers, and violations may result in civil penalties. The document also covers the rights and liabilities of depositors, allowing various methods of withdrawal. However, it does not affect the rights, liabilities, or responsibilities of participants in an electronic fund transfer under the federal Electronic Fund Transfer Act. Additionally, the document addresses loans made by banks and trust companies, stating that individuals falsely representing their age to obtain loans cannot later avoid repayment based on their true age. It also allows banks and trust companies to associate with organizations or associations of banks and trust companies, subject to certain conditions. Lastly, the document outlines the requirements for bank or trust companies to close their business and deliver their assets to the Department of Financial Institutions for liquidation and payment of liabilities, with provisions for reopening if approved by the department. No specific exemptions or penalties are mentioned in this section.
Whom does it apply to?
Banks, savings banks, trust companies, depositors, borrowers, organizations or associations of banks and trust companies, Department of Financial Institutions
What does it govern?
Statements of account, dormant accounts, service and maintenance charges, transfers of debt, naming conventions, investigatory and enforcement powers, rights and liabilities of depositors, loans, association with other organizations, closure and liquidation of banks and trust companies
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned, except for civil penalties of up to $15,000 for marketing materials or solicitations that violate the regulations related to naming conventions and advertising as a bank or trust company.
Jurisdiction
Indiana