23 Hoosier Banker May 2016 provides broker-dealers and qualified individuals certain immunity from civil liability. It allows broker-dealers to provide to certain entities access to or copies of records relevant to a suspected financial exploitation. The bill requires the securities commissioner to develop and make available on the secretary of state’s Internet website information that includes training resources to assist in the prevention and detection of financial exploitation of endangered adults. The bill amends the definition of “outof-pocket loss” for purposes of determining a restitution assistance award. The bill increases the maximum amount of assistance from the securities restitution fund from the lesser of $15,000 or 25 percent of the amount of out-of-pocket loss to the lesser of $25,000 or 25 percent of the amount of out-of-pocket loss. Details: This legislation, being sought by the secretary of state’s office, provides additional clarity of responsibilities for broker-dealers regarding elder financial abuse. The IBA sought several changes to SB 221 to ensure that the bill would not conflict with any existing state or federal statutes for institutions with broker-dealer relationships. SB 232 – Land Banks Sen. Tim Lanane, D-Anderson Rep. John Price, R-Greenwood Bill summary: This bill authorizes a county, consolidated city or second-class city, to which the unsafe building law applies, to establish a municipal corporation known as a land bank to manage and improve the marketability of distressed real property in the county or city that establishes the land bank. The bill requires a land bank’s bylaws to require the land bank board to approve any conveyance of real property in an open meeting and consider any pertinent information regarding the property’s value or the financial ability of a person before approving a conveyance. This bill allows the land bank to enter into an agreement that conditions the purchase, transfer or lease of property upon the person fulfilling conditions related to the mission of the land bank. It provides that the material failure of a person to fulfill the agreement may void the purchase, transfer or lease, unless the land bank grants the person additional time to comply with the agreement. The bill also specifies that the procedures for disposal of real or personal property by a local government do not apply to the land bank. Details: The IBA monitored this bill closely for requirements imposed on lenders related to the disposition of vacant property. Previous land bank bills have had problematic provisions related to banks. SB 232 creates an opportunity for second-class cities to create land banks. SB 242 – Loans to Credit Union Officers Sen. Greg Walker, R-Columbus Rep. Woody Burton, R-Whiteland Bill summary: For purposes of the statute authorizing a state-chartered credit union to make a loan to an officer of the credit union, this bill makes the lending limit consistent with federal law that applies to loans to officers of a bank. (Current law provides that the total of all such outstanding loans may not exceed $100,000.) Details: This bill was initiated by the Indiana Credit Union League. Credit unions may change their internal lending limits through state law, unlike banks that rely on congressional action. The IBA was opposed to the initial draft of this bill. The bill was heard in the Senate Insurance & Financial Institutions Committee on Jan. 14. The IBA testified against the bill. Ultimately the bill was amended, with an approach that was preferable to the IBA. SB 253 – Uniform Fiduciary Access to Digital Assets Act Sen. Brent Waltz, R-Greenwood Rep. Thomas Washburne, R-Evansville Bill summary: The bill enacts the Revised Uniform Fiduciary Access to Digital Assets Act of the National Conference of Commissioners on Uniform State Laws. It defines “digital asset” as an electronic record in which an individual has a right or interest. It defines “custodian” as a person who carries, maintains, processes, receives or stores a digital asset. It defines “user” as a person for whom a custodian carries, maintains, processes, receives or stores the digital asset. It defines “fiduciary” as an attorney in fact, guardian, personal representative or trustee of a user. It authorizes a user to use an online tool to direct the custodian to disclose or not to disclose some or all of the user’s digital assets. The bill provides that, if an online tool allows the user to modify or delete a direction at all times, a user’s direction to the custodian through use of the online tool concerning disclosure overrides a contrary direction by the user in a will, trust, power of attorney or other record, but otherwise the user, in a will, trust, power of attorney or other record, may allow or prohibit disclosure to a fiduciary of some or all of the user’s digital assets. It requires a custodian, under certain circumstances, to disclose to the personal representative of the estate of the user the content of an electronic communication sent or received by the user, or a catalog of electronic communications sent or received by the user. It requires a custodian, under certain circumstances, to disclose to an attorney in fact the content of the electronic communications of the user, or a catalog of electronic communications sent or received by the user, if the user, through a power of attorney, conferred upon the attorney in fact authority over the content of electronic communications sent or received by the user. It requires a custodian, under certain circumstances, to disclose to a trustee the content of an electronic communication sent or received by a user and carried, maintained, processed, received or stored by the custodian in the account of the trust, or to disclose to the trustee a catalog of electronic communications sent or received by a user and stored, carried or maintained by the custodian in the account of the trust. It provides that a court may grant a guardian access to the digital assets of the protected person and that, under certain circumstances, a custodian is required to disclose to a guardian a catalog of electronic communications sent or received by the protected person. It authorizes a fiduciary of a user to request that a custodian terminate the user’s account. The bill provides that, if the conditions for compliance are met, a custodian must comply with a request from a fiduciary to disclose digital assets or terminate an account within 60 days, and if the custodian fails to comply with the request, the fiduciary may apply for a court order directing compliance. The bill provides that the legal duties imposed on a fiduciary charged with managing tangible property also apply to a fiduciary charged with managing digital assets. It amends the law on unsupervised administration of a decedent’s estate to provide that a distributee has the same rights as a personal Continued on page 24.
RkJQdWJsaXNoZXIy MTg3NDExNQ==