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Can you summarize IC 28-1-3.1?
DEPARTMENT OF FINANCIAL INSTITUTIONS > Liquidation of Financial Institutions
Short Summary
The provided legal document content pertains to the liquidation of financial institutions in Indiana. The documents outline the authority of the Department of Financial Institutions to take possession of the business and property of financial institutions under certain conditions, such as insolvency, unsafe or unsound condition, refusal to pay deposits or obligations, violation of court orders or regulations, or breach of fiduciary duties. The department is required to make a finding of such conditions and serve a certified copy of the finding to the financial institution’s executive officer, who must surrender possession to the department. However, creditors licensed to make supervised or regulated loans under IC 24-4.5 are exempted from this authority. The documents also govern the procedures and rights related to the liquidation process, including the appointment of a receiver, the handling of claims, the payment of claims, the rejection of contracts or obligations, the appointment of a successor to fiduciary duties, and the filing of articles of dissolution. The receiver appointed for a closed financial institution has various powers and duties, such as taking possession of assets, collecting debts, initiating and defending litigation, and selling or paying off mortgages and liens. The documents also address the process of presenting claims against a closed financial institution, the priority of claim payments, and the handling of personal property left in the possession of the institution. No specific penalties are mentioned in these documents.
Whom does it apply to?
Financial institutions in Indiana
What does it govern?
The liquidation of financial institutions
What are exemptions?
Creditors licensed to make supervised or regulated loans under IC 24-4.5 are exempted from the authority of the Department of Financial Institutions to take possession of the business and property of financial institutions.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
Indiana