26 Hoosier Banker December 2015 COMPLIANCE CONNECTION About Compliance Connection In order to address compliance inquiries from members, IBA provides Compliance Connection, an assistance program offering advice on Indianaspecific compliance questions. If the matter requires legal advice, IBA Compliance Connection will refer the bank to a law firm. Acting as IBA’s compliance counsel is Brett J. Ashton, partner with Krieg DeVault LLP, Indianapolis, and chair of the firm’s financial institutions practice group. Submit Compliance Connection questions to IBA’s Amber R. Van Til at avantil@indianabankers. org or Josh Myers at jmyers@indianabankers.org. Question: Does Indiana have any state law protections for members of the military that I need to comply with? If so, are there Indiana-specific requirements broader than the federal requirements that we have become accustomed to? Answer: Yes, as of July 1, 2015, the Indiana Servicemembers Civil Relief Act (ISCRA) extends coverage to more servicemembers than its federal counterpart, the Servicemembers Civil Relief Act (SCRA). The SCRA is a federal law that protects Servicemembers, defined to include members of the Army, Navy, Air Force, Marine Corps, Coast Guard and commissioned officers of the Public Health Service or the National Oceanic and Atmospheric Administration who are on active duty; or National Guard members called to active service by the president or the secretary of defense for a period of more than 30 consecutive days to respond to a national emergency. While the SCRA has been updated several times since it originally was enacted by Congress in 2003, until this year the ISCRA has mirrored the SCRA requirements. The Indiana General Assembly passed House Enrolled Act 1456 in the 2015 legislative session, and Gov. Pence signed the bill into law, with the result of expanding the scope of those covered by the ISCRA in Indiana effective July 1, 2015. The ISCRA expands the protections previously provided to members or reserve members of the Indiana National Guard when they are called to active service by the president or the secretary of defense for more than 30 consecutive days, and to Guard members or reserve members who are called to active duty by the Indiana governor pursuant to his or her authority under Ind. Code § 1016-7-7. While banks have come to rely on the U.S. Department of Defense database to screen customers for SCRA coverage, members and reserve members provided protection under the ISCRA are unlikely to be identified in this system. Instead, the ISCRA requires members or reserve members of the Indiana National Guard who have been ordered to state active duty to provide documentation to their banks that they have been ordered to state active duty for at least 30 consecutive days. If a bank fails to comply with either the ISCRA or the SCRA, the Indiana attorney general’s office is empowered to file a civil action in state court to seek injunctive relief and civil damages of as much as $5,000 per violation, in addition to seeking attorney’s fees. t This information is provided for general education purposes and is not intended to be legal advice. Please consult legal counsel for specific guidance as to how this information applies to your institution’s circumstances or situation. LEGISLATIVE BRIEFING & RECEPTION January 19, 2016 - The Westin Indianapolis Learn the latest news about major banking issues at the Statehouse, and network with your elected officials. Register now at www.indianabankers.org. For questions, contact Josh Myers at 317-917-8047 or by email at jmyers@indianabankers.org.
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