Ind. Code ch. 23-2.5-11

in effect

Ind. Code § 23-2.5-11-1 Permissive actions; denial of licensure application or renewal; suspension; revocation

Sec. 1. The commissioner may deny an application for an initial or a renewal license under this article, and may suspend or revoke the license of a licensee, if the applicant, the licensee, or an ultimate equitable owner of a loan broker or an applicant for a loan broker license: (1) has, within the most recent ten (10) years: (A) been the subject of an adjudication or a determination by: (i) a court with jurisdiction; or (ii) an agency or administrator that regulates securities, commodities, banking, financial services, insurance, real estate, or the real estate appraisal industry; in Indiana or any other jurisdiction; and (B) been found, after notice and opportunity for hearing, to have violated the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal laws of the state or any other jurisdiction; (2) except as provided in section 2(1) of this chapter with respect to the activities of a loan broker, has: (A) been denied the right to do business in the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal industry; or (B) had the person's authority to do business in the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal industry revoked or suspended; by the state or another state, federal, or foreign governmental agency or self-regulatory organization; (3) is insolvent; (4) has violated this article; (5) has knowingly filed with the commissioner a document or statement that: (A) contains a false representation of a material fact; (B) fails to state a material fact; or (C) contains a representation that becomes false: (i) after the filing; and (ii) during the term of the license; and does not notify the commissioner as required by IC 23-2.5-4-8; (6) has been convicted, during the ten (10) years preceding the date of the application, renewal, or review, of a crime, other than a felony, involving fraud or deceit; (7) if the person is a loan broker, has failed to reasonably supervise the person's mortgage loan originators, loan processors or underwriters, or employees to ensure compliance with this article; (8) is on the most recent tax warrant list supplied to the commissioner by the department of state revenue; (9) has engaged in dishonest or unethical practices, as determined by the commissioner; or (10) has, after receiving a request from the securities division for additional documentation or information in connection with an application for an initial or renewal license, failed to properly respond to the request within thirty (30) days after the date on which the person receives the request. As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.28.

Ind. Code § 23-2.5-11-2 Required actions; denial of licensure application or renewal; suspension; revocation

Sec. 2. The commissioner shall deny an application for an initial or a renewal license under this article, and shall revoke the license of a licensee, if the applicant, the licensee, or an ultimate equitable owner of a loan broker or an applicant for a loan broker license: (1) has had a: (A) loan broker license issued under this article; (B) mortgage loan originator license issued under this article; or (C) license that is: (i) equivalent to a license described in clause (A) or (B); and (ii) issued by another jurisdiction; revoked by the commissioner or the appropriate regulatory agency in another jurisdiction, whichever applies; (2) has been convicted of or pleaded guilty or nolo contendere to a felony in a domestic, foreign, or military court: (A) during the seven (7) year period immediately preceding the date of the application or renewal; or (B) at a time preceding the date of the application or renewal if the felony involved an act of fraud or dishonesty, a breach of trust, or money laundering; (3) fails to maintain the bond required by IC 23-2.5-4-12; (4) fails to demonstrate the financial responsibility, character, and general fitness necessary to: (A) command the confidence of the community in which the applicant or licensee engages or will engage in the activities of a loan broker; and (B) warrant a determination by the commissioner that the applicant or licensee will operate honestly, fairly, and efficiently according to the requirements of this article; (5) has failed to meet the education requirements set forth in IC 23-2.5-6; (6) has failed to pass the written examination required by IC 23-2.5-6; or (7) fails to: (A) keep or maintain records in accordance with IC 23-2.5-8; or (B) allow the commissioner or an agent appointed by the commissioner to inspect or examine a loan broker's books and records to determine compliance with IC 23-2.5-8. As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.29.

Ind. Code § 23-2.5-11-3 Investigation; orders; penalties

Sec. 3. (a) If the commissioner determines that a person has engaged in or is about to engage in an act or a practice that violates this article or a rule or an order under this article, the commissioner may investigate and issue: (1) with a prior hearing if there exists no substantial threat of immediate irreparable harm; or (2) without a prior hearing if there exists a substantial threat of immediate irreparable harm; orders and notices determined by the commissioner to be in the public interest, including cease and desist orders, orders to show cause, and notices. (b) After notice and hearing, the commissioner may enter an order of rescission, restitution, or disgorgement, including interest at the rate of eight percent (8%) per year, directed to a person who the commissioner determines has violated this article or a rule or an order under this article. (c) If the commissioner determines, after a hearing, that a person has violated this article or a rule or an order under this article, the commissioner may, in addition to other remedies, impose a civil penalty on the person in an amount not to exceed ten thousand dollars ($10,000) for each violation. (d) Upon the commissioner's issuance under subsection (a) of an order or notice without a prior hearing, the commissioner shall promptly notify: (1) the respondent; and (2) if the subject of the order or notice is a mortgage loan originator or a manager, the loan broker for whom the mortgage loan originator or manager is employed; of the issuance of the order or notice. (e) The notification required by subsection (d) must include the following: (1) Notice that the order or notice has been issued. (2) Notice of the reasons the order or notice has been issued. (3) Notice that upon the commissioner's receipt of a written request from the person against which the order or notice is issued, the matter will be set for a hearing to commence not later than: (A) fifteen (15) business days after the commissioner's receipt of the request if the original order or notice issued by the commissioner was a summary suspension, summary revocation, or denial of a license; and (B) forty-five (45) business days after the commissioner's receipt of the request for any other order or notice, unless the respondent consents to a later date. (f) If a hearing: (1) is not requested under subsection (e); and (2) is not ordered by the commissioner; an order or notice issued under this section remains in effect until the order or notice is modified or vacated by the commissioner. (g) If a hearing is requested under subsection (e) or ordered by the commissioner, the commissioner, after notice of an opportunity for hearing, may modify or vacate the order or notice or extend the order or notice until final determination. As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.30.

Ind. Code § 23-2.5-11-4 Censure; permanent bar

Sec. 4. The commissioner may do either of the following: (1) Censure: (A) a licensee; (B) an officer, a director, an ultimate equitable owner, or an equitable owner of a loan broker; or (C) another person; who violates or causes a violation of this article. (2) Permanently bar a person described in subdivision (1) from being: (A) licensed under this article; or (B) employed by, or affiliated with, a person that is licensed under this article; if the person violates or causes a violation of this article. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-11-5 Notice before final order

Sec. 5. (a) Except as provided in subsection (b), the commissioner may not enter a final order: (1) denying, suspending, or revoking the license of an applicant or a licensee; or (2) imposing another sanction; without prior notice to all interested parties, opportunity for a hearing, and written findings of fact and conclusions of law. (b) The commissioner may, by summary order, deny, suspend, or revoke a license: (1) pending final determination of a proceeding under this chapter; or (2) before a proceeding is initiated under this chapter. (c) Upon the entry of a summary order under subsection (b), the commissioner shall promptly notify all interested parties: (1) that the summary order has been entered; (2) of the reasons for the summary order; and (3) that, upon receipt by the commissioner of a written request from a party, the matter will be set for hearing to commence not later than forty-five (45) business days after the commissioner's receipt of the request. (d) If a hearing: (1) is not requested under subsection (c); and (2) is not ordered by the commissioner; the summary order remains in effect until the summary order is modified or vacated by the commissioner. (e) If a hearing is requested under subsection (c) or ordered by the commissioner, the commissioner may: (1) after notice of the hearing has been given to all interested persons; and (2) the hearing has been held; modify or vacate the summary order or extend the summary order until final determination is made. As added by P.L.175-2019, SEC.2. Amended by P.L.211-2019, SEC.31.

Ind. Code § 23-2.5-11-6 Implementation; rules; commissioner actions

Sec. 6. (a) The commissioner may do the following: (1) Issue forms and orders to implement this article. (2) Adopt rules under IC 4-22-2 to implement this article. (3) Repeal rules, including rules and forms governing applications, notice filings, reports, and other records. (4) Define terms consistent with this article, whether or not used in this article. (5) Conduct investigations and examinations: (A) in connection with an application for licensure, or a license issued, under this article; (B) whenever it appears to the commissioner, upon the basis of a complaint or information, that reasonable grounds exist for the belief that an investigation or examination is necessary or advisable for the more complete protection of the interests of the public; and (C) including investigations and examinations of a loan broker office, principal place of business, branch office, location listed in a mortgage loan originator's application under IC 23-2.5-4-3, appraisal company, or loan processing company. (6) Charge, as costs of investigation or examination, reasonable expenses including: (A) a per diem prorated on the salary of the: (i) commissioner; or (ii) employee performing the investigation or examination; and (B) actual travel and hotel expenses; to be paid by the person that is under investigation or examination and that is determined to have violated this article. (7) After conducting an investigation or examination, issue notices and orders, including cease and desist notices and orders. A notice or order issued under this subdivision must include the following: (A) Notice that the notice or order is issued. (B) Notice that if the commissioner receives from the person a written request for a hearing concerning the notice or order, a hearing will be set not later than: (i) fifteen (15) business days after the commissioner receives the request if the original order issued by the commissioner was a summary suspension, summary revocation, or denial of a license; and (ii) forty-five (45) business days after the commissioner receives the request for an order not described in item (i). (8) Sign, or delegate to a deputy commissioner the authority to sign orders, official certifications, documents, or papers issued under this article. (9) Hold and conduct hearings. (10) Hear evidence. (11) Conduct inquiries, with or without hearings. (12) Receive reports of investigators or other officers or employees of the state or a municipal corporation or governmental subdivision in Indiana. (13) Administer, or cause to be administered, oaths. (14) Subpoena witnesses and compel witnesses to attend and testify. (15) Compel the production of books, records, and other documents. (16) Order depositions to be: (A) taken of witnesses that reside in Indiana or elsewhere; (B) taken in the manner prescribed by law for depositions in civil actions; and (C) made returnable to the commissioner. (17) Order the same fees and mileage allowances provided for witnesses in civil cases to be paid to each witness who appears under the commissioner's order to testify before the commissioner. (18) Provide interpretive opinions or issue determinations that the commissioner will not institute a proceeding or an action under this article against a specified person for engaging in a specified act, practice, or course of business if: (A) the request for the interpretive opinion or determination is made after the date on which the specified act, practice, or course of business occurs; and (B) the interpretive opinion or determination is consistent with this article. (19) Adopt rules to establish fees for individuals requesting an interpretive opinion or a determination under subdivision (18). (20) Subject to subsection (b): (A) designate a multistate automated licensing system and repository (including the Nationwide Multistate Licensing System), established and operated by a third party, to serve as the sole entity responsible for: (i) processing applications for license issuance and renewal under this article; and (ii) performing other services that the commissioner determines are necessary for the orderly administration of the securities division's licensing system; and (B) take action necessary to allow the securities division to participate in a multistate automated licensing system and repository described in clause (A). (b) The commissioner's authority to designate a multistate automated licensing system and repository under subsection (a)(20) is subject to the following: (1) The commissioner may not require: (A) a person that is not required to be licensed under this article; or (B) an employee or agent of a person that is not required to be licensed under this article; to submit information to or participate in the multistate automated licensing system and repository. (2) The commissioner may require a person that is required under this article to submit information to the multistate automated licensing system and repository to pay a processing fee considered to be reasonable by the commissioner. (c) The commissioner shall do the following: (1) Subject to IC 5-14-3, regularly report: (A) violations of this article; and (B) enforcement actions and other relevant information; to the Nationwide Multistate Licensing System. (2) Establish a process by which a mortgage loan originator may challenge information entered by the commissioner into the Nationwide Multistate Licensing System. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-11-7 Immunity of witness

Sec. 7. (a) If a witness, in a hearing, an inquiry, or an investigation conducted under this article, refuses to answer a question or produce an item, the commissioner may file a written petition with the circuit or superior court in the county where the hearing, investigation, or inquiry is conducted requesting a hearing on the refusal. (b) The court described in subsection (a) shall hold a hearing to determine if the witness may refuse to answer the question or produce the item. (c) If the court described in subsection (a) determines that the witness, based upon the witness's privilege against self-incrimination, may properly refuse to answer or produce an item, the commissioner may make a written request that the court grant use immunity to the witness. (d) Upon written request of the commissioner under subsection (c), the court shall grant use immunity to the witness and instruct the witness, by written order or in open court, that: (1) any evidence the witness gives, or evidence derived from the evidence given, may not be used in a criminal proceeding against the witness, unless the evidence is volunteered by the witness or is not responsive to a question; and (2) the witness must answer the questions asked and produce the items requested. (e) A grant of use immunity under this section does not prohibit evidence that the witness gives in a hearing, investigation, or inquiry from being used in a prosecution for perjury under IC 35-44.1-2-1. (f) If a witness refuses to give evidence after the witness has been granted use immunity, the court may find the witness in contempt. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-11-8 Certificate of compliance or noncompliance

Sec. 8. (a) In a prosecution, action, suit, or proceeding based on or arising out of this article, the commissioner may sign a certificate showing compliance or noncompliance with this article by any person. (b) A certificate signed under subsection (a) constitutes prima facie evidence of compliance or noncompliance with this article and is admissible in evidence in an action at law or in equity to enforce this article. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-11-9 Court to compel obedience to subpoena, order, or demand

Sec. 9. (a) This section applies when a person or witness takes an action as follows: (1) A person disobeys a lawful: (A) subpoena issued under this article; or (B) order or demand requiring the production of books, accounts, papers, records, documents, or other evidence or information as provided in this article. (2) A witness in a hearing, inquiry, or investigation refuses to: (A) appear when subpoenaed; (B) testify to a matter about which the witness may be lawfully interrogated; or (C) take or subscribe to an oath required by this article. (b) If a person or witness takes an action described in subsection (a): (1) the circuit or superior court of the county in which the hearing, inquiry, or investigation described in subsection (a) is held, if: (A) demand is made; or (B) upon written petition, the production is ordered to be made; (2) the commissioner; (3) before July 1, 2020, a hearing officer appointed by the commissioner; or (4) after June 30, 2020, an administrative law judge assigned, after request by the commissioner, by the office of administrative law proceedings established by IC 4-15-10.5-7; shall compel compliance with the lawful requirements of the subpoena, order, or demand, compel the production of the necessary or required books, papers, records, documents, and other evidence and information, and compel the witness to attend in an Indiana county and to testify to any matter about which the witness may lawfully be interrogated, and to take or subscribe to any oath required. As added by P.L.175-2019, SEC.2. Amended by P.L.205-2019, SEC.26.

Ind. Code § 23-2.5-11-10 Action to enforce penalty

Sec. 10. The commissioner may bring an action in the circuit or superior court of Marion County to enforce payment of a penalty imposed under this article. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-11-11 Action to enjoin; other relief

Sec. 11. (a) If the commissioner believes that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business that: (1) is; or (2) materially aids; a violation of this article or a rule adopted or an order issued under this article, the commissioner may maintain an action in the circuit or superior court in the county where the investigation or inquiry is being conducted to enjoin the act, practice, or course of business and to enforce compliance with this article or a rule adopted or an order issued under this article. (b) In an action under this section and on a proper showing, the court may: (1) issue a permanent or temporary injunction, restraining order, or declaratory judgment; (2) order other appropriate or ancillary relief, including: (A) an asset freeze, accounting, writ of attachment, writ of general or specific execution, and appointment of a receiver or conservator; (B) ordering a receiver or conservator appointed under clause (A) to: (i) take control of a respondent's property, including investment accounts and accounts in a depository institution, rents, and profits; (ii) collect debts; and (iii) acquire and dispose of property; (C) imposing a civil penalty of not more than ten thousand dollars ($10,000) per violation and an order of rescission, restitution, or disgorgement directed to the person that has engaged in an act, practice, or course of business constituting a violation of this article or a rule adopted or an order issued under this article; and (D) ordering the payment of prejudgment and postjudgment interest; or (3) order other relief that the court considers appropriate. (c) The commissioner may not be required to post a bond in an action or a proceeding under this article. (d) Penalties collected under this section must be deposited in the securities division enforcement account established by IC 23-19-6-1(f). As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-11-12 Appeal; procedure

Sec. 12. (a) An appeal may be taken, to the Marion circuit court or the circuit or superior court of the county where the person taking the appeal resides or maintains a place of business, by the following: (1) A person whose application for issuance or renewal of a license under this article is granted or denied, from any final order of the commissioner concerning the application. (2) An applicant for issuance or renewal of a license as a mortgage loan originator, from any final order of the commissioner affecting the application. (3) An applicant for issuance or renewal of a license for a loan broker office from any final order of the commissioner affecting the application. (4) A person against whom a civil penalty is imposed under section 3(c) of this chapter, from the final order of the commissioner imposing the civil penalty. (5) A person who is named as a respondent, from any final order of the commissioner under this article. (b) Not later than twenty (20) days after the entry of the order under subsection (a), the commissioner must be served with: (1) a written notice of the appeal specifying the court to which the appeal will be taken and the grounds on which a reversal of the final order is sought; (2) a demand in writing from the appellant for a certified transcript of the record and all papers on file in the commissioner's office that affect or relate to the order; and (3) a bond in the penal sum of five hundred dollars ($500) to the state with sufficient surety to be approved by the commissioner, conditioned on the faithful prosecution of the appeal to final judgment and the payment of all costs that are adjudged against the appellant. (c) Not later than ten (10) days after the date on which the commissioner is served with the items listed in subsection (b), the commissioner shall make, certify, and deliver to the appellant the transcript, and the appellant shall, not later than five (5) days after the date on which the appellant receives the transcript, file the transcript and a copy of the notice of appeal with the clerk of the court. The notice of appeal serves as the appellant's complaint. The commissioner may appear and file a motion or pleading and form the issue. The cause must be entered on the trial calendar for trial de novo and given precedence over all matters pending in the court. (d) The court shall receive and consider any pertinent oral or written evidence concerning the order of the commissioner from which an appeal under this section is taken. If the order of the commissioner is reversed, the court shall in the court's mandate specifically direct the commissioner concerning the commissioner's further action in the matter. The commissioner is not barred from revoking or altering the order for proper cause that accrues or is discovered after the order is entered. If the order is affirmed, the appellant is not barred after thirty (30) days after the date on which the order is affirmed from filing a new application if the application is not otherwise barred or limited. During the pendency of the appeal, the order from which the appeal is taken is not suspended but remains in effect unless otherwise ordered by the court. An appeal may be taken from the judgment of the court on the same terms and conditions as an appeal is taken in civil actions. As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.31.

Ind. Code § 23-2.5-11-13 Admissibility of copied statements, documents, and records

Sec. 13. Copies of a statement or document filed with the commissioner, and copies of any records of the commissioner, certified to by the commissioner or a deputy are admissible in a prosecution, an action, a suit, or a proceeding based on, or arising out of or under, this article to the same extent that the original of the statement, document, or record would be admissible if produced. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-11-14 Court compelled obedience to subpoena, order, or demand

Sec. 14. Upon: (1) disobedience on the part of any person to a lawful: (A) subpoena issued under this article; or (B) order or demand requiring the production of books, accounts, papers, records, documents, or other evidence or information as provided in this article; or (2) the refusal of a witness to: (A) appear when subpoenaed to testify to a matter regarding which the witness may be lawfully interrogated; or (B) take or subscribe to an oath required by this article; it is the duty of the circuit or superior court of the county where the hearing, inquiry, or investigation in question is held, where demand is made, or where the production is ordered to be made, upon written petition of the commissioner, to compel obedience to the lawful requirements of the subpoena, order, or demand. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-11-15 Contempt of court; liability for damages; contract void

Sec. 15. (a) If a person fails, refuses, or neglects to comply with a court order under this chapter, the person must be held in contempt of court. (b) A person who violates this article or a rule adopted under this article, in connection with a contract for the activities of a loan broker, is liable to a person damaged by the violation for: (1) the amount of the actual damages suffered; (2) interest at the legal rate; and (3) attorney's fees. (c) If a person violates this article, or a rule adopted under this article, in connection with a contract for the activities of a loan broker, the contract is void, and the prospective borrower is entitled to receive from the loan broker all sums paid to the loan broker. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-11-16 Securities division and department of financial institutions; cooperation

Sec. 16. In the securities division's investigative, examination, and regulatory activities related to licensees under this article, the securities division may cooperate with the Indiana department of financial institutions in the regulation of a licensee that conducts: (1) business under this article; and (2) business that requires licensure under IC 37-1. As added by P.L.175-2019, SEC.2. Amended by P.L.115-2026, SEC.21.

Ind. Code § 23-2.5-11-17 Violations; felonies

Sec. 17. (a) Except as provided in subsection (b), a person who knowingly violates this article commits a Level 5 felony. (b) A person who knowingly violates this article commits a Level 4 felony if the person damaged by the violation is at least sixty (60) years of age. (c) A person commits a Level 5 felony if the person knowingly makes or causes to be made in: (1) a document filed with or sent to the commissioner or the securities division; or (2) a proceeding, an investigation, or an examination under this article; a statement that is, at the time and in the light of the circumstances under which the statement is made, false or misleading in any material respect. As added by P.L.175-2019, 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