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Indiana Secretary of State Connie Lawson issued an announcement highlighting new laws and regulations regarding continuing education for notaries public, remote notary authorization, and criminal history record checks for notaries public. As of March 31, active notaries public can receive authorization to conduct remote notarizations if they submit an application, complete an educational course, pay a $100 fee, and contract with an approved technology vendor. The new laws relating to continuing education and criminal history record checks take effect on July 1.
On April 17, the Massachusetts attorney general announced a settlement with a credit reporting agency (CRA) to resolve a state investigation into a 2017 data breach that reportedly compromised the personal information of nearly three million Massachusetts residents. According to the AG’s 2017 complaint (covered by InfoBytes here), the CRA ignored cybersecurity vulnerabilities for months before the breach occurred and failed to take measures to implement and maintain reasonable safeguards. Under the terms of the proposed settlement, pending final court approval, the CRA will pay Massachusetts $18.2 million and is required to take significant measures to strengthen its security practices to ensure compliance with Massachusetts law. These measures include (i) implementing a comprehensive information security program; (ii) minimizing the collection of sensitive personal information; (iii) managing and implementing specific technical safeguards and controls; (iv) providing consumer-related relief, such as credit monitoring services and security freezes; and (iv) allowing third-party assessments of its data safeguards.
Earlier, on April 14, the Indiana attorney general also announced that the CRA will pay the state $19.5 million to resolve allegations that it failed to protect Indiana residents whose personal information was exposed in the 2017 data breach. Under the terms of the final judgment and consent decree, in addition to paying $19.5 million in restitution, the CRA must take measures similar to those outlined in the Massachusetts settlement.
Massachusetts and Indiana were the only two states that chose not to participate in the 2017 multi-agency settlement that resolved federal and state investigations into the data breach and required the company to pay up to $700 million (covered by InfoBytes here).
Separately, on April 7, the City of Chicago announced a $1.5 million settlement to resolve allegations that the CRA’s failure to employ adequate data-security measures led to the breach.
Indiana Supreme Court issues order protecting stimulus payments from attachment or garnishment from creditors
On April 20, the Indiana Supreme Court issued an order in response to a petition for emergency rulemaking to protect stimulus payments under the CARES Act from attempts by private creditors to attach or garnish those payments during the Covid-19 emergency. Pursuant to the order, courts are prohibited from issuing new orders placing a hold on, attaching, or garnishing funds in a judgment-debtor’s account in a depository institution if those funds are attributable to a stimulus payment, with certain exceptions. With respect to previously issued court orders placing a hold on a judgment-debtor’s account in a depository institution, the judgement-debtor is entitled to a hearing, upon request, to determine what funds in the account are attributable to a stimulus payment and for the judgement-debtor to assert any exemption(s) under state or federal law. These measures are effective until the expiration of the Covid-19 public health emergency or until the Indiana Supreme Court suspends the order.
The Indiana Department of Financial Institutions, Depository Division announced that it has suspended nearly all examination activity. The division also suspended prior notice requirements for temporary branch or office closures, extended the deadline for submission of audits required for banks and corporate fiduciaries, and granted permission for institutions to make temporary changes to their bylaw requirements for annual meetings.
On April 6, the governor of Indiana issued an executive order updating the terms of previous orders to remain at home. Among other updates, the order instructs professional service providers, such as lawyers, accountants, insurance providers and real estate service providers, to conduct their business virtually or by telephone whenever possible. The order also creates an Enforcement Response Team comprised of state law enforcement to respond to and investigate reports of violations.
The Indiana Secretary of State, Securities Division issued a compliance alert to notify registrants that the division granted relief from fingerprinting requirements associated with registration applications for investment adviser representatives. The division indicated that it may provisionally approve an application for registration without fingerprints, provided the applicant submits fingerprints before June 30, 2020.
On April 1, the Indiana Secretary of State, Securities Division issued a compliance alert to notify registrants that the division granted relief from fingerprinting requirements associated with registration applications for investment adviser representatives. The division indicated that it may provisionally approve an application for registration without fingerprints, provided the applicant submits fingerprints before June 30, 2020.
On March 26, the Indiana secretary of state posted a statement providing that there are currently no approved remote notary technology vendors. Individuals are encouraged to check the announcement regularly as the secretary of state is working on approving vendors.
On March 20, the Indiana Department of Financial Institutions confirmed that because it does not require licenses for mortgage branch locations or require a licensee to work from a specific branch, there are no restrictions on an individual mortgage loan originator (MLO) from working from a home office.
On March 24, the Indiana governor issued a Stay at Home Order, for all residents except for those leaving their homes or residences for essential activities, essential governmental functions, or to participate in essential business and operations. Essential business and operations include financial and insurance institutions.
- Brandy A. Hood to discuss "Ongoing challenges of TRID compliance" at the Mortgage Bankers Association Live: Legal Issues and Regulatory Compliance Conference
- Daniel R. Alonso to discuss "Resisting temptation in a crisis: How to make sure ethics and compliance don't get diluted under financial strain" at a New York City Bar Association webcast
- Daniel P. Stipano to discuss "BSA for BSA seasoned officers" at an NAFCU webinar
- Jon David D. Langlois to discuss "LIBOR transition: Preparations for legal professionals" at a Mortgage Bankers Association webinar
- Garylene D. Javier to discuss "Navigating workplace culture in 2020" at the DC Bar Conference