Compliance; reasonable justification for noncompliance; damages for failure to comply or provide a reasonable justification for noncompliance
Ind. Code § 23-17-25.7-3
in effectSec. 3. (a) A financial institution or insurance company that receives the affidavit described in section 2(1) of this chapter shall:
(1) comply with the requirements of section 2 of this chapter; or
(2) provide to the charitable organization that submitted the affidavit described in section 2(1) of this chapter a reasonable justification for not complying with the requirements of section 2 of this chapter;
not later than sixty (60) days after receiving the affidavit.
(b) It is a reasonable justification for not complying with the requirements of section 2 of this chapter if compliance would cause a financial institution to violate:
(1) 12 U.S.C. 1829b, 12 U.S.C. 1951-1960, 31 U.S.C. 5311-5314, 31 U.S.C. 5316-5336, 31 CFR 1000-1099, or any other federal law or regulation;
(2) the rules of a self-regulatory organization registered under the federal Securities Exchange Act of 1934 (15 U.S.C. 78); or
(3) the laws of this state.
(c) If compliance with the requirements of section 2 of this chapter would cause a violation of a federal law described in subsection (b), the financial institution shall include in its reasonable justification a request to the charitable organization to provide the information required to comply with the federal law described in subsection (b).
(d) If a financial institution or insurance company fails to comply or provide a reasonable justification for not complying with the requirements of section 2 of this chapter not later than sixty (60) days after receiving the affidavit described in section 2(1) of this chapter, a court may:
(1) award the charitable organization damages sustained due to the delay in receiving the funds under section 2 of this chapter;
(2) award the charitable organization court costs, including attorney's fees; and
(3) impose a civil penalty on the financial institution or insurance company in an amount not less than five hundred dollars ($500) and not more than ten thousand dollars ($10,000) per incident.
As added by P.L.220-2025, SEC.2.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/23Fetched: 10/17/2026