Ind. Code ch. 32-25.5-4

Ind. Code § 32-25.5-4-1 Attorney general's action against association or board member; misappropriation or fraud; proxy violations; budgeting violations

Sec. 1. The attorney general may bring an action against a board of a homeowners association or an individual member of a board of a homeowners association if the attorney general finds that any of the following apply: (1) The association's funds have been knowingly or intentionally misappropriated or diverted by a board member. (2) A board member has knowingly or intentionally used the board member's position on the board to commit fraud or a criminal act against the association or the association's members. (3) A proxy was exercised, or was allowed to be exercised, in violation of IC 32-25.5-3-10. (4) A violation of IC 32-25.5-3-3 has occurred. As added by P.L.141-2015, SEC.13. Amended by P.L.164-2016, SEC.7.

Ind. Code § 32-25.5-4-2 Court remedies; imposition of civil penalties; limitations

Sec. 2. (a) A court in which an action is brought under this chapter may do the following: (1) Issue an injunction. (2) Order the board member to make restitution to the homeowners association or to a member of the homeowners association. (3) Order a board member to be removed from the board. (4) Order a board member to reimburse the state for the reasonable costs of the attorney general's investigation and prosecution of the violation. (5) Impose a civil penalty on a member of the board of a homeowners association or on another individual, as appropriate, determined by the court to have taken an action described in section 1(1), 1(2), or 1(3) of this chapter. (b) A civil penalty imposed under subsection (a)(5) may not exceed five hundred dollars ($500) for each action described in section 1(1), 1(2), or 1(3) of this chapter that the board member is determined by the court to have taken. The proceeds of a civil penalty imposed under subsection (a)(5) shall be deposited in the state general fund. As added by P.L.141-2015, SEC.13. Amended by P.L.164-2016, SEC.8.