2023 Indiana Code › Title 28. Financial Institutions › Article 8. Financial Services › Chapter 4. Money Transmitters › 28-8-4-20.5. Use of Nmlsr in Department's Licensing System; Reporting of Information to Nmlsr; Confidentiality; Director's Authority to Enter Agreements; Waiver of Privilege; Processing Fee; Electronic Records

Note: This version of section effective until 1-1-2024. See also following repeal of this chapter, effective 1-1-2024.
Sec. 20.5. (a) As used in this section, "Nationwide Multistate Licensing System and Registry" (or "Nationwide Mortgage Licensing System and Registry" or "NMLSR") means a multistate licensing system owned and operated by the State Regulatory Registry, LLC, or by any successor or affiliated entity, for the licensing and registration of creditors, mortgage loan originators, and other financial services entities and their employees and agents. The term includes any other name or acronym that may be assigned to the system by the State Regulatory Registry, LLC, or by any successor or affiliated entity.
(b) Subject to subsection (g), the director may designate the NMLSR to serve as the sole entity responsible for:
(1) processing applications and renewals for licenses under this chapter;
(2) issuing unique identifiers for licensees and entities exempt from licensing under this chapter; and
(3) performing other services that the director determines are necessary for the orderly administration of the department's licensing system under this chapter.
(c) Subject to the confidentiality provisions contained in IC 5-14-3, this section, and section 47 of this chapter, the director may regularly report significant or recurring violations of this chapter to the NMLSR.
(d) Subject to the confidentiality provisions contained in IC 5-14-3, this section, and section 47 of this chapter, the director may report complaints received regarding licensees under this chapter to the NMLSR.
(e) The director may report publicly adjudicated licensure actions against a licensee to the NMLSR.
(f) The director shall establish a process by which licensees may challenge information reported to the NMLSR by the department.
(g) The director's authority to designate the NMLSR under subsection (b) is subject to the following:
(1) Information stored in the NMLSR is subject to the confidentiality provisions of IC 5-14-3 and section 47 of this chapter. A person may not:
(A) obtain information from the NMLSR, unless the person is authorized to do so by statute;
(B) initiate any civil action based on information obtained from the NMLSR if the information is not otherwise available to the person under any other state law; or
(C) initiate any civil action based on information obtained from the NMLSR if the person could not have initiated the action based on information otherwise available to the person under any other state law.
(2) Documents, materials, and other forms of information in the control or possession of the NMLSR that are confidential under section 47 of this chapter and that are:
(A) furnished by the director, the director's designee, or a licensee; or
(B) otherwise obtained by the NMLSR;
are confidential and privileged by law and are not subject to inspection under IC 5-14-3, subject to subpoena, subject to discovery, or admissible in evidence in any civil action. However, the director may use the documents, materials, or other information available to the director in furtherance of any action brought in connection with the director's duties under this chapter.
(3) Disclosure of documents, materials, and information:
(A) to the director; or
(B) by the director;
under this subsection does not result in a waiver of any applicable privilege or claim of confidentiality with respect to the documents, materials, or information.
(4) Information provided to the NMLSR is subject to IC 4-1-11.
(5) This subsection does not limit or impair a person's right to:
(A) obtain information;
(B) use information as evidence in a civil action or proceeding; or
(C) use information to initiate a civil action or proceeding;
if the information may be obtained from the director or the director's designee under any law.
(6) The requirements under any federal law or IC 5-14-3 regarding the privacy or confidentiality of any information or material provided to the NMLSR, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to the information or material, continue to apply to the information or material after the information or material has been disclosed to the NMLSR. The information and material may be shared with all state and federal regulatory officials with financial services industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal law or IC 5-14-3.
(7) For purposes of this section, the director may enter agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, the Money Transmitters Regulators Association, or other associations representing governmental agencies, as established by rule or order of the director.
(8) Information or material that is subject to a privilege or confidentiality under subdivision (6) is not subject to:
(A) disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of the federal government or the respective state; or
(B) subpoena, discovery, or admission into evidence in any private civil action or administrative process, unless with respect to any privilege held by the NMLSR with respect to the information or material, the person to whom the information or material pertains waives, in whole or in part, in the discretion of the person, that privilege.
(9) Any provision of IC 5-14-3 that concerns the disclosure of:
(A) confidential supervisory information; or
(B) any information or material described in subdivision (6);
and that is inconsistent with subdivision (6) is superseded by this section.
(10) This section does not apply with respect to information or material that concerns the employment history of, and publicly adjudicated disciplinary and enforcement actions against, a person described in section 35(b)(2) or 35(b)(3) of this chapter and that is included in the NMLSR for access by the public.
(11) The director may require a licensee required to submit information to the NMLSR to pay a processing fee considered reasonable by the director. In determining whether the NMLSR processing fee is reasonable, the director shall:
(A) require review of; and
(B) make available;
the audited financial statements of the NMLSR.
(12) Notwithstanding any other provision of law, any:
(A) application, renewal, or other form or document that:
(i) relates to licenses issued under this chapter; and
(ii) is made or produced in an electronic format;
(B) document filed as an electronic record in a multistate automated repository established and operated for the licensing or registration of financial services entities and their employees; or
(C) electronic record filed through the NMLSR;
is considered a valid original document when reproduced in paper form by the department.
As added by P.L.216-2013, SEC.47. Amended by P.L.159-2017, SEC.44; P.L.176-2019, SEC.61.