2023 Indiana Code › Title 25. Professions and Occupations › Article 11. Collection Agencies › Chapter 1. Licensing of Collection Agencies by Secretary of State › 25-11-1-3. "Nationwide Multistate Licensing System"; Application; Contents; Fee; Renewal; Surety Bond; Agent for Service of Process; Designation of Nmls by Secretary of State

Sec. 3. (a) As used in this section, "Nationwide Multistate Licensing System" refers to a multistate licensing system owned and operated by the State Regulatory Registry, LLC, or by a successor or an affiliated entity, for the licensing and registration of:
(1) creditors;
(2) mortgage loan originators;
(3) other financial services entities; and
(4) employees and agents of the persons described in subdivisions (1) through (3).
The term includes "NMLS" and any other name or acronym that may be assigned to the system by the State Regulatory Registry, LLC, or by a successor or an affiliated entity of the State Regulatory Registry, LLC.
(b) Any person desiring to conduct a collection agency shall make an application to the secretary of state upon such forms as may be prescribed by the secretary of state. Such application shall include the following:
(1) If the applicant is an individual:
(A) the individual's name;
(B) the individual's residence address;
(C) the address of each location from which the individual carries out the activities of the collection agency; and
(D) a statement that the individual satisfies the qualifications set forth in section 4 of this chapter.
(2) If the applicant is a partnership:
(A) the name of each partner;
(B) the business address of the partnership;
(C) the residence address of at least one (1) of the partners;
(D) the address of each location from which the partnership carries out the activities of the collection agency; and
(E) a statement that each partner in the partnership satisfies the qualifications set forth in section 4 of this chapter.
(3) If the applicant is a limited liability company:
(A) the date and place of organization;
(B) the name of the limited liability company;
(C) the business address of the limited liability company;
(D) the residence address of at least one (1) of the managers or members of the limited liability company; and
(E) a statement that each of the managers and members in the limited liability company satisfies the qualifications set forth in section 4 of this chapter.
(4) If the applicant is a corporation:
(A) the date and place of incorporation;
(B) the name of the corporation;
(C) the business address of the corporation;
(D) the residence address of at least one (1) of the officers of the corporation; and
(E) a statement that each of the officers of the corporation satisfies the qualifications set forth in section 4 of this chapter.
The application shall be duly sworn to before an officer qualified to administer oaths. The application shall set forth in the application any other verified information which will assist the secretary of state in determining the qualifications of the applicant to meet the requirements of a collection agency as set forth in this chapter.
(c) Every original and renewal application of any person desiring to conduct a collection agency shall be accompanied by a fee of one hundred dollars ($100) plus an additional fee of thirty dollars ($30) for each branch office operated by the applicant whether as sole owner, partnership, limited liability company, or corporation.
(d) Any person desiring to secure a renewal of a collection agency license shall make a renewal application to the secretary of state not later than January 1 of the year following the year in which the person's license expires under section 5 of this chapter. The application shall be made on such forms as the secretary of state may prescribe. Such application shall contain in the application verified information that will assist the secretary of state in determining whether or not the applicant is in default, or is in violation of any of the provisions of this chapter, and whether or not the applicant has at all times complied with the requirements of this chapter in the operation of the applicant's collection agency.
(e) Each renewal application shall be accompanied by the renewal fee and an additional fee of thirty dollars ($30) for each branch office maintained and operated by the applicant.
(f) An original application or a renewal application under this section must be accompanied by the following:
(1) An electronic corporate surety bond that is:
(A) filed by the applicant collection agency; and
(B) satisfactory to the commissioner;
in an amount calculated to equal the sum of five thousand dollars ($5,000) for each office the applicant operates in Indiana. A collection agency's bond must run to the people of Indiana and must be furnished by a surety company authorized to do business in Indiana. A collection agency's bond must be conditioned upon the faithful accounting of all money collected upon accounts entrusted to the collection agency and must be continuous in form and remain in full force and effect and run continuously with the license period and any renewal period. A collection agency's bond must further be conditioned upon the provision that the applicant shall, not later than sixty (60) days from the date of the collection of any claim, render an account of and pay to the client, for whom collection has been made, the proceeds of such collection less the charges for collection agreed upon by and between the applicant and the client. A collection agency's bond shall be filed through the NMLS. A collection agency's bond that is filed through the NMLS and approved by the secretary of state is for the use and benefit of all persons damaged by the wrongful conversion of any money by the collection agency, and any individual so injured or aggrieved may bring an action upon the bond. The surety company may notify the secretary of state and principal of its desire to terminate its liability under any bond furnished. Upon receipt of such notice by the secretary of state, the secretary of state shall require the principal to file a new bond or discontinue all operations not later than the date that is thirty (30) days after the secretary of state's receipt of the notice. If a new bond is filed by the principal, all liability under any previous bond ceases and terminates. If a new bond is not filed within the thirty (30) day period described in this subdivision, the secretary of state shall, after expiration of the period, revoke the principal's license.
(2) Any applicant who is a nonresident of Indiana shall also submit a statement appointing an agent or attorney resident upon whom all legal process against the applicant may be served. The statement must contain a stipulation that the applicant agrees that service of legal process upon such agent or attorney constitutes valid service upon the applicant.
(g) Subject to subsection (h), the secretary of state may designate the NMLS or another multistate automated licensing system and repository, established and operated by a third party, to serve as the sole entity responsible for:
(1) processing applications for:
(A) licenses under this chapter; and
(B) renewals of licenses under this chapter; and
(2) performing other services that the secretary of state determines are necessary for the orderly administration of the secretary of state's licensing system under this chapter.
The secretary of state may take any action necessary to participate in the NMLS or another multistate automated licensing system and repository.
(h) The secretary of state's authority to designate the NMLS or another multistate automated licensing system and repository under subsection (g) is subject to the following:
(1) The secretary of state may not require any person that is not required to be licensed under this chapter, or any employee or agent of a person that is not required to be licensed under this chapter, to:
(A) submit information to; or
(B) participate in;
the NMLS or another multistate automated licensing system and repository.
(2) The secretary of state may require a person required under this chapter to submit information to the NMLS or another multistate automated licensing system and repository to pay a processing fee considered reasonable by the secretary of state.
Formerly: Acts 1937, c.92, s.3; Acts 1955, c.304, s.3. As amended by Acts 1978, P.L.12, SEC.8; P.L.8-1993, SEC.377; P.L.178-1996, SEC.2; P.L.85-2012, SEC.8; P.L.136-2018, SEC.141; P.L.152-2020, SEC.11.