Use of money in fund
Sec. 29. (a) Money in the fund may be used to provide restitution
to a seller who performs a defaulted contract, to a purchaser, or to a
purchaser's estate for pecuniary loss arising from a trust or an escrow
required by:
(1) this chapter;
(2) IC 23-14-49-1;
(3) IC 30-2-9; or
(4) IC 30-2-10.
The repeal of a statute cited in this subsection does not terminate the
ability of a party to a contract made under the repealed statute to
receive restitution under this chapter.
(b) The purchaser, seller, or other interested person must request
restitution by filing a verified complaint with the board.
(c) The board may investigate any verified complaint. Within
sixty (60) days after a verified complaint is filed, the board shall
determine if a seller has defaulted on a contract. If the seller's
obligation to perform under the contract cannot be collected from the
seller, the board shall order the auditor of state to make restitution
from the fund.
(d) The amount of restitution may not exceed the gross amount of
the original contract plus interest, compounded annually, on the gross
amount that is figured, for each year or part of a year for which
restitution is owed, using the lesser of:
(1) the rate set forth in IC 24-4.6-1-101 in effect on January 1
of each year; or
(2) the monthly average yield on United States Treasury
Securities for the month of January of each year, adjusted to a
constant maturity of one (1) year, as published by the Federal
Reserve.
The fund may not be charged with court costs or the payment of legal
or other fees. In computing the amount of restitution, the board shall
give credit for:
(1) merchandise delivered; and
(2) resources still existing in trust.
(e) When restitution is paid from the fund, the fund is subrogated
to the amount of the restitution, and the board shall ask the attorney
general to take all reasonable steps to collect the subrogated amount
from the seller. Any amount collected shall be deposited in the fund.
(f) Money in the fund may only be used for a purpose that is
specified in this section.
(g) The payment of restitution from the fund is not a right, and a
purchaser does not have a vested right in the fund as a beneficiary of
the fund.
(h) The status of the fund shall be annually reviewed by the board.
If the board determines during its annual review that the fund balance
equals or exceeds one million five hundred thousand dollars
($1,500,000), the board shall suspend payments to the fund until
after the next annual review that the board determines that the fund
balance is less than one million five hundred thousand dollars
($1,500,000).
As added by P.L.200-1991, SEC.1. Amended by P.L.120-1994,
SEC.5; P.L.52-1997, SEC.54; P.L.114-1999, SEC.17.
Last modified: May 27, 2006