Sec. 13. Every company issuing any such certificates of indebtedness or investment shall at all times maintain a reserve balance equal to at least three percent (3%) of the total amount paid in on all of its outstanding certificates of indebtedness or investment, which said reserve balance shall consist of cash on hand or on demand deposit with a solvent and going bank or trust company. If at any time such reserve balance shall be reduced below the amount prescribed in this section, such company shall not issue any additional certificates of indebtedness or investment nor make any new loans or pay any dividends until such reserve balance shall have been fully restored to the amount prescribed in this section. All of the officers and such of the directors as participate in violating any of the provisions of this section shall be jointly and severally liable to the holder or holders of any certificates of indebtedness or investment issued when such reserve balance is below the amount prescribed in this section for any loss suffered or sustained by them accruing by reason of such violation. Any such company which maintains federal deposit insurance as authorized in section 6(a)(17) of this chapter and which maintains the reserves required by the Federal Reserve Act shall be considered to have complied fully with this section.
Formerly: Acts 1935, c.181, s.13; Acts 1947, c.135, s.3; Acts 1955, c.20, s.6; Acts 1971, P.L.399, SEC.5. As amended by P.L.269-1983, SEC.3; P.L.136-2018, SEC.211.
Structure Indiana Code
Title 28. Financial Institutions
Article 5. Industrial Loan and Investment Companies
Chapter 1. Industrial Loan and Investment Act
28-5-1-2. Application of Chapter
28-5-1-3. Definitions; Department's Powers
28-5-1-4. Definitions; Certificate of Authority; Branches; Automated Teller Machines
28-5-1-5. Capital Requirements
28-5-1-6.3. Request to Exercise Rights and Privileges Granted to National Banks; Appeal
28-5-1-6.5. Sale of Annuity Contracts
28-5-1-10. Time for Existing Companies to Comply With Loan Limits
28-5-1-11. Acquisition or Conveyance of Real Estate; Purposes
28-5-1-12. Certificates of Indebtedness or Investment; Form; Payment; Withdrawals
28-5-1-13. Certificates of Indebtedness or Investment; Reserve Balance
28-5-1-14. Surplus Account; Dividends
28-5-1-15. Authority of Department; Examination of Affiliates; Examination of Vendors
28-5-1-16. Records Retention Policy
28-5-1-17. Rules and Regulations
28-5-1-18. Fidelity Coverage for Officers and Employees; Bonds; Reserve Funds
28-5-1-19. Exclusion From Banking Business; False Advertising; Desist Orders
28-5-1-22.1. Prohibited Transactions
28-5-1-25. Conversion Into State Bank, Trust Company, or Savings Association
28-5-1-26. Requirement to Provide Property Tax Information in Certain Transactions