Ind. Code ch. 37-2-1

in effect

Ind. Code § 37-2-1-0.1 Recodification of prior law

Sec. 0.1. This article must be construed as a recodification of prior law. The enactment of this article by SEA 169-2026 does not affect the substantive operation and effect of the prior law. As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-0.3 Contracts entered into under prior law

Sec. 0.3. A contract entered into in accordance with IC 24-4.5 (before its repeal) is considered a contract entered into in accordance with this article. As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-0.5 Documents, websites, or business communications created under prior law

Sec. 0.5. Any document, website, or business communication created in accordance with IC 24-4.5 (before its repeal) is considered a document, website, or business communication created in accordance with this article. As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-0.7 References to repealed statutes; references to citations

Sec. 0.7. (a) A reference in a statute or rule to a statute that is repealed and replaced in the same or a different form in the recodification act of the 2026 regular session of the general assembly is treated after the effective date of the new provision as a reference to the new provision. (b) A citation reference in the recodification act of the 2026 regular session of the general assembly to another provision of the recodification act of the 2026 regular session of the general assembly is treated as including a reference to the provision of the uniform consumer credit code that is substantively equivalent to the provision of the recodification act of the 2026 regular session of the general assembly that is referred to by the citation reference. As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-1 Purposes; rules of construction; related rules or guidance adopted by department; applicability to disguised consumer credit transactions; violations of other consumer laws; enforcement of disclosure requirements for mortgage transactions

Sec. 1. (a) This article shall be liberally construed and applied to promote the following underlying purposes and policies of this article: (1) To simplify, clarify, and modernize the law governing retail installment sales, consumer credit, small loans, and usury. (2) To provide rate ceilings to assure an adequate supply of credit to consumers. (3) To further consumer understanding of the terms of credit transactions and to foster competition among suppliers of consumer credit so that consumers may obtain credit at reasonable cost. (4) To protect consumer buyers, lessees, and borrowers against unfair practices by some suppliers of consumer credit, having due regard for the interests of legitimate and scrupulous creditors. (5) To permit and encourage the development of fair and economically sound consumer credit practices. (6) To conform the regulation of consumer credit transactions to the policies of the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) and to applicable state and federal laws, rules, regulations, policies, and guidance. (7) To make uniform the law, including administrative rules, among the various jurisdictions. (b) A reference to a requirement imposed by this article includes reference to a related rule or guidance of the department adopted pursuant to this article. (c) A reference to a federal law in this article is a reference to the law as in effect December 31, 2024. (d) This article applies to a transaction if the director determines that the transaction: (1) is in substance a disguised consumer credit transaction; or (2) involves the application of subterfuge for the purpose of avoiding this article. A determination by the director under this subsection must be in writing and shall be delivered to all parties to the transaction. IC 4-21.5-3 applies to a determination made under this subsection. (e) The authority of this article remains in effect, whether a licensee, an individual, or a person subject to this article acts or claims to act under any licensing or registration law of this state, or claims to act without such authority. (f) A violation of a state or federal law, regulation, or rule applicable to consumer credit transactions is a violation of this article. (g) The department may enforce penalty provisions set forth in 15 U.S.C. 1640 for violations of disclosure requirements applicable to mortgage transactions. [Pre-2026 Revision Citation: 24-4.5-1-102.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-2 Supplementary general principles of law applicable

Sec. 2. Unless displaced by the particular provisions of this article, the Uniform Commercial Code (IC 26-1) and the principles of law and equity (including the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, or other validating or invalidating cause) shall supplement the provisions of this article. [Pre-2026 Revision Citation: 24-4.5-1-103.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-3 Construction against implicit repeal

Sec. 3. This article is a general statute intended to provide unified coverage of its subject matter. Subsequent legislation may not be construed to repeal any part of the article by implication if the construction can reasonably be avoided. [Pre-2026 Revision Citation: 24-4.5-1-104.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-4 Severability

Sec. 4. The provisions of this article are severable, so that if: (1) any provisions of this article; or (2) the application of this article to any person or circumstances; is held invalid, the invalidity does not affect other provisions or applications of this article that can be given effect without the invalid provision or application. [Pre-2026 Revision Citation: 24-4.5-1-105.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-5 Adjustment of dollar amounts

Sec. 5. (a) The dollar amounts in this article designated as subject to change shall change, as provided in this section, according to the Consumer Price Index for Urban Wage Earners and Clerical Workers: U.S. City Average, All Items, 1957-59 equals 100, compiled by Bureau of Labor Statistics, United States Department of Labor, and referred to in this section as the Index. The Index for October 1971, is the Reference Base Index. (b) The dollar amounts shall change on January 1 of each odd-numbered year if the percentage of change, calculated to the nearest whole percentage point, between the Index at the end of the preceding odd-numbered year and the Reference Base Index is ten percent (10%) or more, except that: (1) the portion of the percentage change in the Index in excess of a multiple of ten percent (10%) shall be disregarded and the dollar amounts shall change only in multiples of ten percent (10%) of the amounts on March 5, 1971; (2) the dollar amounts shall not change if the amounts required by this section are those currently in effect pursuant to this article as a result of earlier application of the section; and (3) in no event shall the dollar amounts be reduced below the amounts appearing in this article on March 5, 1971. (c) If the Index is revised after December 1967, the percentage of change shall be calculated on the basis of the revised Index. If the revision of the Index changes the Reference Base Index, a revised Reference Base Index shall be determined by multiplying the Reference Base Index by the ratio of the revised Index to the current Index, as each was for the first month in which the revised Index is available. If the Index is superseded, the Index is the one represented by the Bureau of Labor Statistics as reflecting most accurately changes in the purchasing power of the dollar for consumers. (d) The department shall issue a rule under IC 4-22-2 announcing: (1) sixty (60) days before January 1 of each odd-numbered year in which dollar amounts are to change, the changes in dollar amounts required by subsection (b); and (2) promptly after the changes occur, changes in the Index required by subsection (c), including, when applicable, the numerical equivalent of the Reference Base Index under a revised Reference Base Index and the designation or title of any index superseding the Index. (e) A person does not violate this article through a transaction otherwise complying with this article if the person relies on dollar amounts either determined according to subsection (b) or appearing in the last rule of the department announcing the then current dollar amounts. [Pre-2026 Revision Citation: 24-4.5-1-106.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-6 Waiver; agreement to forego rights; settlement of claims

Sec. 6. (a) Except as otherwise provided in this article, a buyer, lessee, or debtor may not waive or agree to forego rights or benefits under this article. (b) A claim by a buyer, lessee, or debtor against a creditor for an excess charge, other violation of this article, or civil penalty, or a claim against a buyer, lessee, or debtor for default or breach of a duty imposed by this article, if disputed in good faith, may be settled by agreement. (c) A claim, whether or not disputed against a buyer, lessee, or debtor may be settled for less value than the amount claimed. (d) A settlement in which the buyer, lessee, or debtor waives or agrees to forego rights or benefits under this article is invalid if the court as a matter of law finds the settlement to have been unconscionable at the time it was made. The competence of the buyer, lessee, or debtor, any deception or coercion practiced upon the buyer, lessee, or debtor, the nature and extent of the legal advice received by the buyer, lessee, or debtor, and the value of the consideration are relevant to the issue of unconscionability. [Pre-2026 Revision Citation: 24-4.5-1-107.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-7 Effect on powers of organizations

Sec. 7. (a) This article prescribes maximum charges for all creditors, except lessors and those excluded under section 10 of this chapter, extending consumer credit, including consumer credit sales, consumer loans, and consumer related sales and loans, and displaces existing limitations on the powers of those creditors based on maximum charges. (b) With respect to sellers of goods or services, small loan companies, licensed lenders, consumer and sales finance companies, industrial loan and investment companies, and commercial banks and trust companies, this article displaces existing limitations on their powers based solely on amount or duration of credit. (c) Except as provided in subsection (a) and IC 24-4.6-1, this article does not displace limitations on powers of credit unions, savings banks, savings or building and loan associations, or other thrift institutions whether organized for the profit of shareholders or as mutual organizations. (d) Except as provided in subsections (a) and (b), this article does not displace: (1) limitations on powers of depository institutions with respect to the amount of a loan to a single borrower, the ratio of a loan to the value of collateral, the duration of a loan that is a mortgage transaction, or other similar restrictions designed to protect deposits; or (2) limitations on powers an organization is authorized to exercise under the laws of this state or the United States. [Pre-2026 Revision Citation: 24-4.5-1-108.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-8 Persons licensed or authorized on October 1, 1971

Sec. 8. All persons licensed on October 1, 1971, under: (1) IC 24-5-4 (before its repeal on October 1, 1971); (2) IC 28-7-4 (before its repeal on October 1, 1971); (3) IC 28-7-2 (before its repeal on October 1, 1971); or (4) IC 28-5-1-4; are licensed to make supervised loans under this article, subject to the renewal provisions contained in this article. All provisions of this article apply to the persons previously licensed or authorized. The department may deliver evidence of licensing to the persons previously licensed or authorized. [Pre-2026 Revision Citation: 24-4.5-1-109.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-9 Territorial application; determination of residence; invalid agreements; violations; voiding of loan

Sec. 9. (a) Except as otherwise provided in this section, this article applies to sales, leases, and loans made in this state and to modifications, including refinancings, consolidations, and deferrals, made in this state, of sales, leases, and loans, wherever made. For purposes of this article, the following apply: (1) A sale or modification of a sale agreement is made in this state if the buyer's agreement or offer to purchase or to modify is received by the seller or a person acting on behalf of the seller in this state. (2) A lease or modification of a lease agreement is made in this state if the lessee's agreement or offer to lease or to modify is received by the lessor or a person acting on behalf of the lessor in this state. (3) A loan or modification of a loan agreement is made in this state if a writing signed by the debtor and evidencing the debt is received by the lender or a person acting on behalf of the lender in this state. (4) Except as provided in subdivisions (5) and (6), a sale, lease, or loan transaction occurs in Indiana if a consumer who is a resident of Indiana enters into a consumer sale, lease, or loan transaction with a creditor or a person acting on behalf of the creditor in another state and the creditor or the person acting on behalf of the creditor has advertised or solicited sales, leases, or loans in Indiana by any means, including by mail, brochure, telephone, print, radio, television, the Internet, or electronic means. (5) A sale, lease, or loan transaction does not occur in Indiana if a consumer who is a resident of Indiana enters into a consumer sale, lease, or loan transaction secured by an interest in land located outside Indiana. (6) A sale, lease, or loan transaction does not occur in Indiana if a consumer who is a resident of Indiana enters into a consumer sale, lease, or loan transaction at a creditor's place of business in another state. For purposes of subdivisions (1) through (4), an offer is received by a creditor or a person acting on behalf of the creditor in Indiana if the offer is physically delivered, or otherwise transmitted or communicated, to a person who has actual or apparent authority to act for the creditor or the person acting on behalf of the creditor in Indiana, regardless of whether approval, acceptance, or ratification by any other agent or representative of the creditor or the person acting on behalf of the creditor in another state is necessary to give legal consequence to the consumer credit transaction. (b) IC 37-2-6-1 through IC 37-2-6-7 apply to actions or other proceedings brought in this state to enforce rights arising from consumer credit sales, consumer leases, or consumer loans, or extortionate extensions of credit, wherever made. (c) Except as provided in subsection (b), a sale, lease, loan, or modification thereof, made in another state to a person who was not a resident of this state when the sale, lease, loan, or modification was made is valid and enforceable in this state according to its terms to the extent that it is valid and enforceable under the laws of the state applicable to the transaction. (d) For the purposes of this article, the residence of a buyer, lessee, or debtor is the address given by the buyer, lessee, or debtor as the buyer's, lessee's, or debtor's residence in any writing or electronic communication made by the buyer, lessee, or debtor in connection with a credit transaction. Until the buyer, lessee, or debtor notifies the creditor or the person acting on behalf of the creditor of a new or different address, the given address is presumed to be unchanged. (e) Notwithstanding other provisions of this section: (1) except as provided in subsection (b), this article does not apply if the buyer, lessee, or debtor is not a resident of this state at the time of a credit transaction and the parties then agree that the law of the buyer's, lessee's, or debtor's residence applies; and (2) this article applies if the buyer, lessee, or debtor is a resident of this state at the time of a credit transaction and the parties then agree that the law of this state applies. (f) Except as provided in subsection (e), the following agreements by a buyer, lessee, or debtor are invalid with respect to consumer credit sales, consumer leases, consumer loans, or modifications thereof, to which this article applies: (1) An agreement that the law of another state shall apply. (2) An agreement that the buyer, lessee, or debtor consents to the jurisdiction of another state. (3) An agreement that fixes venue. (g) The following provisions of this article specify the applicable law governing certain cases: (1) IC 37-2-7-1 (applicability of the provisions on powers and functions of the department). (2) IC 37-2-7-24 (applicability of the provisions on notification and fees). (h) If a creditor or a person acting on behalf of the creditor has violated the provisions of this article that apply to the authority to make consumer loans (IC 37-2-4-23), the loan is void and the debtor is not obligated to pay either the principal or loan finance charge, as set forth in IC 37-2-6-9. [Pre-2026 Revision Citation: 24-4.5-1-201.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-10 Exempt transactions and persons

Sec. 10. This article does not apply to the following: (1) Extensions of credit to or by a government or governmental agencies or instrumentalities. (2) The sale of insurance by an insurer, except as otherwise provided in the chapter on insurance (IC 37-2-5). (3) Transactions under public utility, municipal utility, or common carrier tariffs if a subdivision or agency of this state or of the United States regulates the charges for the services involved, the charges for delayed payment, and any discount allowed for early payment. (4) The rates and charges and the disclosure of rates and charges of a licensed pawnbroker established in accordance with a statute or ordinance concerning these matters. (5) A sale of goods, services, or an interest in land in which the goods, services, or interest in land are purchased primarily for a purpose other than a personal, family, or household purpose. (6) A loan in which the debt is incurred primarily for a purpose other than a personal, family, or household purpose. (7) An extension of credit primarily for a business, a commercial, or an agricultural purpose. (8) An installment agreement for the purchase of home fuels in which a finance charge is not imposed. (9) Loans made, insured, or guaranteed under a program authorized by Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). (10) Transactions in securities or commodities accounts in which credit is extended by a broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission. (11) Except for IC 37-2-4-24(d), IC 37-2-4-29, IC 37-2-4-33(d), and IC 37-2-4-33(e), a loan made: (A) in compliance with the requirements of; and (B) by a community development corporation (as defined in IC 4-4-28-2) acting as a subrecipient of funds from; the Indiana housing and community development authority established by IC 5-20-1-3. (12) Except for IC 37-2-4-24(d), IC 37-2-4-29, IC 37-2-4-33(d), and IC 37-2-4-33(e), a subordinate lien mortgage transaction made by an entity that exclusively uses funds provided by the United States Department of Housing and Urban Development under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended (42 U.S.C. 5301 et seq.). (13) The United States, any state or local government, or any agency or instrumentality of any governmental entity, including United States government sponsored enterprises and state educational institutions (as defined in IC 21-7-13-32). For purposes of this subdivision, an "instrumentality" of a governmental entity includes a foundation, a corporate or nonprofit subsidiary, or an affiliate of the governmental entity. (14) A bona fide nonprofit organization not operating in a commercial context, as determined by the director, if the following criteria are satisfied: (A) Subject to clause (B), the organization originates only one (1) or both of the following types of mortgage transactions: (i) Zero (0) interest first lien mortgage transactions. (ii) Zero (0) interest subordinate lien mortgage transactions. (B) The organization does not require, under the terms of the mortgage or otherwise, balloon payments with respect to the mortgage transactions described in clause (A). (C) The organization is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. (D) The organization's primary purpose is to serve the public by helping low income individuals and families build, repair, and purchase housing. (E) The organization uses only: (i) unpaid volunteers; or (ii) employees whose compensation is not based on the number or size of any mortgage transactions that the employees originate; to originate the mortgage transactions described in clause (A). (F) The organization does not charge loan origination fees in connection with the mortgage transactions described in clause (A). (15) A bona fide nonprofit organization if the following criteria are satisfied: (A) For each calendar year that the organization seeks the exemption provided by this subdivision, the organization certifies, not later than December 31 of the preceding calendar year and on a form prescribed by the director and accompanied by such documentation as required by the director, that the organization is a bona fide nonprofit organization. (B) The director determines that the organization originates only mortgage transactions that are favorable to the debtor. For purposes of this clause, a mortgage transaction is favorable to the debtor if the director determines that the terms of the mortgage transaction are consistent with terms of mortgage transactions made in a public or charitable context, rather than in a commercial context. [Pre-2026 Revision Citation: 24-4.5-1-202(b).] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-1-11 Cooperation with securities commissioner; individuals also conducting activities of a loan broker

Sec. 11. In examinations or other regulatory activities conducted by the department and related to licensees under this article, the department may cooperate with the Indiana securities commissioner in the regulation of individuals who, in addition to conducting business regulated under this article, also conduct a loan broker business subject to IC 23-2.5. [Pre-2026 Revision Citation: 24-4.5-1-204.] As added by P.L.115-2026, SEC.97.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/37Fetched: 10/17/2026