Ind. Code ch. 37-2-4

Ind. Code ch. 37-2-4
in effect

Ind. Code § 37-2-4-0.1 Application of certain amendments

Sec. 0.1. The following amendments to IC 24-4.5-3 (before its repeal) applied as follows: (1) The amendments made to IC 24-4.5-3-201 (before its repeal) by P.L.163-1999 did not apply to consumer loans in existence before July 1, 1999. (2) The amendments made to IC 24-4.5-3-209(1) (before its repeal) by P.L.159-2001 applied to a contract between a lender and a debtor that is entered into or renewed after June 30, 2001. [Pre-2026 Revision Citation: 24-4.5-3-0.1.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-1 Application

Sec. 1. (a) This chapter applies to consumer loans, including supervised loans. (b) Sections 15 through 21 of this chapter apply to consumer loans. Except as otherwise provided, all provisions of this article applying to consumer loans apply to supervised loans. (c) Sections 41 through 44 of this chapter apply to consumer related loans. (d) Except for the rate of the loan finance charge and the rights to prepay and to rebate upon prepayment, sections 4 through 13 of this chapter apply to a consumer related loan. (e) The licensing provisions of this chapter apply to consumer credit sales under IC 37-2-3 that are subordinate lien mortgage transactions. [Pre-2026 Revision Citations: 24-4.5-3-102; 24-4.5-3-513; 24-4.5-3-603.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-2 "Consumer loan"; first lien mortgage transaction not included

Sec. 2. Unless a loan is made subject to this chapter by agreement under section 41 of this chapter, and except with respect to: (1) disclosure (section 14 of this chapter); (2) debtors' remedies (IC 37-2-6-8); (3) providing payoff amounts (section 12 of this chapter); (4) providing property tax information (section 46 of this chapter); (5) powers and functions of the department (IC 37-2-7-3); (6) the department's examination and investigatory authority (IC 37-2-7-5); and (7) the department's administrative enforcement authority (IC 37-2-7-9); the term "consumer loan" does not include a first lien mortgage transaction. [Pre-2026 Revision Citation: 24-4.5-3-105.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-3 "Precomputed"

Sec. 3. A loan, refinancing, or consolidation is considered precomputed if the debt is expressed as a sum comprising the principal and the amount of the loan finance charge computed in advance. [Pre-2026 Revision Citation: 24-4.5-3-107(2).] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-4 Loan finance charge for consumer loans other than supervised loans; loan agreements entered into after June 30, 2020; precomputed consumer loans prohibited; nonrefundable prepaid finance charge; subterfuge by lender; applicability of loansharking statute

Sec. 4. (a) This section does not apply to a supervised loan. Except as provided in subsections (f) and (i), with respect to a consumer loan, a lender may contract for a loan finance charge, calculated according to the actuarial method, not exceeding twenty-five percent (25%) per year on the unpaid balances of the principal. (b) In the case of a loan agreement entered into before July 1, 2020, this section does not limit or restrict the manner of contracting for the loan finance charge, whether by way of add-on, discount, or otherwise, so long as the rate of the loan finance charge does not exceed that permitted by this section. If the loan is precomputed: (1) the loan finance charge may be calculated on the assumption that all scheduled payments will be made when due; and (2) the effect of prepayment is governed by the provisions on rebate upon prepayment in section 13 of this chapter. (c) The following apply to a loan agreement for a consumer loan (or for the refinancing or consolidation of a consumer loan) that is entered into after June 30, 2020: (1) The consumer loan is subject to this section, including the limitations set forth in: (A) subsection (a) with respect to the loan finance charge; and (B) subsection (i)(2) with respect to the amount of the authorized nonrefundable prepaid finance charge, in the case of a consumer loan that is not secured by an interest in land. (2) The loan finance charge authorized by this section must be: (A) contracted for between the lender and the debtor; and (B) calculated by applying a rate not exceeding the rate set forth in subsection (a) to unpaid balances of the principal. (3) A loan agreement for a precomputed consumer loan is prohibited. (4) Subject to subsection (l), in addition to the loan finance charge authorized by subsection (a) and to any other fees permitted by this chapter, and not subject to the twenty-five percent (25%) rate set forth in subsection (a), the lender may contract for and receive as a condition for, or an incident to, the extension of credit a nonrefundable prepaid finance charge under subsection (i), whether the charge is: (A) paid separately in cash or by check before or at consummation; or (B) withheld from the proceeds of the consumer loan. (d) For the purposes of this section, the term of a loan commences with the date the loan is made. Differences in the lengths of months are disregarded, and a day may be counted as one-thirtieth (1/30) of a month. Subject to classifications and differentiations the lender may reasonably establish, a part of a month in excess of fifteen (15) days may be treated as a full month if periods of fifteen (15) days or less are disregarded and if that procedure is not consistently used to obtain a greater yield than would otherwise be permitted. For purposes of computing average daily balances, the creditor may elect to treat all months as consisting of thirty (30) days. (e) With respect to a consumer loan made pursuant to a revolving loan account: (1) the loan finance charge shall be deemed not to exceed the maximum annual percentage rate if the loan finance charge contracted for and received does not exceed a charge in each monthly billing cycle which is two and eighty-three thousandths percent (2.083%) of an amount not greater than: (A) the average daily balance of the debt; (B) the unpaid balance of the debt on the same day of the billing cycle; or (C) subject to subsection (f), the median amount within a specified range within which the average daily balance or the unpaid balance of the debt, on the same day of the billing cycle, is included; for the purposes of this clause and clause (B), a variation of not more than four (4) days from month to month is "the same day of the billing cycle"; (2) if the billing cycle is not monthly, the loan finance charge shall be deemed not to exceed the maximum annual percentage rate if the loan finance charge contracted for and received does not exceed a percentage which bears the same relation to one-twelfth (1/12) the maximum annual percentage rate as the number of days in the billing cycle bears to thirty (30); and (3) notwithstanding subsection (a), if there is an unpaid balance on the date as of which the loan finance charge is applied, the lender may contract for and receive a charge not exceeding fifty cents ($0.50) if the billing cycle is monthly or longer, or the pro rata part of fifty cents ($0.50) which bears the same relation to fifty cents ($0.50) as the number of days in the billing cycle bears to thirty (30) if the billing cycle is shorter than monthly, but no charge may be made pursuant to this subdivision if the lender has made an annual charge for the same period as permitted by the provisions on additional charges in section 5(a)(3) of this chapter. (f) Subject to classifications and differentiations the lender may reasonably establish, the lender may make the same loan finance charge on all amounts financed within a specified range. A loan finance charge does not violate subsection (a) if: (1) when applied to the median amount within each range, it does not exceed the maximum permitted by subsection (a); and (2) when applied to the lowest amount within each range, it does not produce a rate of loan finance charge exceeding the rate calculated according to subdivision (1) by more than eight percent (8%) of the rate calculated according to subdivision (1). (g) With respect to a consumer loan not made pursuant to a revolving loan account, the lender may contract for and receive a minimum loan finance charge of not more than thirty dollars ($30). The minimum loan finance charge allowed under this subsection may be imposed only if the lender does not contract for or receive a nonrefundable prepaid finance charge under subsection (i) and: (1) the debtor prepays in full a consumer loan, refinancing, or consolidation, regardless of whether the loan, refinancing, or consolidation is precomputed; (2) the loan, refinancing, or consolidation prepaid by the debtor is subject to a loan finance charge that: (A) is contracted for by the parties; and (B) does not exceed the rate prescribed in subsection (a); and (3) the loan finance charge earned at the time of prepayment is less than the minimum loan finance charge contracted for under this subsection. (h) The amount of thirty dollars ($30) in subsection (g) is subject to change under the provisions on adjustment of dollar amounts set forth in IC 37-2-1-5. However, notwithstanding IC 37-2-1-5(a), the Reference Base Index to be used under this subsection is the Index for October 1992. (i) Except as provided in subsection (g), and subject to subsection (l), in addition to the loan finance charge authorized by subsection (a) and to any other charges and fees permitted by this chapter, a lender may contract for and receive a nonrefundable prepaid finance charge of not more than the following: (1) In the case of a consumer loan that is secured by an interest in land and that: (A) is not made under a revolving loan account, three percent (3%) of the loan amount; or (B) is made under a revolving loan account, three percent (3%) of the line of credit. (2) In the case of consumer loan that is not secured by an interest in land, fifty dollars ($50) if the loan agreement is entered into before July 1, 2020. If the loan agreement is entered into after June 30, 2020, not more than the following: (A) Seventy-five dollars ($75), in the case of a loan agreement for a principal amount which is two thousand dollars ($2,000) or less. (B) One hundred fifty dollars ($150) in the case of a loan agreement for a principal amount which is more than two thousand dollars ($2,000) but does not exceed four thousand dollars ($4,000). (C) Two hundred dollars ($200) in the case of a loan agreement for a principal amount which is more than four thousand dollars ($4,000). The amounts in this subsection are not subject to change under IC 37-2-1-5. (j) The nonrefundable prepaid finance charge provided for in subsection (i) is not subject to refund or rebate. However, for any loan entered into after June 30, 2020, any amount charged by the lender, other than by a lender that is a depository institution, under subsection (i) that exceeds the applicable amount permitted by subsection (i)(2) constitutes a violation of this article under IC 37-2-7-8(12) and is subject to refund. Any amount charged by a depository institution under subsection (i) that exceeds the applicable amount set forth in subsection (i)(2) is subject to refund. (k) If the director determines that a lender's accrual method of accounting as applied to a consumer loan under this section involves the application of subterfuge for the purpose of circumventing this chapter, the director may conform the loan finance charge and fees for the transaction to the limitations set forth in this section and may require a refund of overcharges under IC 37-2-7-5(b)(1). A determination by the director under this subsection: (1) must be in writing; (2) shall be delivered to all parties in the transaction; and (3) is subject to IC 4-21.5-3. (l) At the time of consummation of a consumer loan: (1) the loan finance charge authorized by subsection (a); and (2) the nonrefundable prepaid finance charge authorized by subsection (i) (including any amount charged by a depository institution that exceeds the applicable amount set forth in subsection (i)(2)); are subject to IC 35-45-7 and, when combined, may not exceed the rate set forth in IC 35-45-7-2. (m) Notwithstanding subsections (i) and (j), in the case of a consumer loan that is not secured by an interest in land, if a lender retains any part of a nonrefundable prepaid finance charge charged on a loan that is paid in full by a new loan from the same lender, the following apply: (1) If the loan is paid in full by the new loan within three (3) months after the date of the prior loan, the lender may not charge a nonrefundable prepaid finance charge on the new loan, or, in the case of a revolving loan, on the increased credit line. (2) The lender may not assess more than two (2) nonrefundable prepaid finance charges in any twelve (12) month period. (3) Subject to subdivisions (1) and (2), if a loan that is entered into by a lender and a debtor before July 1, 2020, is paid in full by a new loan from the same lender after June 30, 2020, the lender may contract for and receive a nonrefundable prepaid finance charge in the amount set forth in subsection (i)(2) for loan agreements entered into after June 30, 2020. (n) In the case of a consumer loan that is secured by an interest in land, this section does not prohibit a lender from contracting for and receiving a fee for preparing deeds, mortgages, reconveyances, and similar documents under section 5(a)(4)(B) of this chapter, in addition to the nonrefundable prepaid finance charge provided for in subsection (i). [Pre-2026 Revision Citation: 24-4.5-3-201.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-5 Permitted additional charges; skip-a-payment services; expedited payment services; debt cancellation agreements; insurance; GAP agreements

Sec. 5. (a) In addition to the loan finance charge permitted by this chapter, a lender may contract for and receive the following additional charges in connection with a consumer loan: (1) Official fees and taxes. (2) Charges for insurance as described in subsection (b). (3) Annual participation fees assessed in connection with a revolving loan account. Annual participation fees must: (A) be reasonable in amount; (B) bear a reasonable relationship to the lender's costs to maintain and monitor the loan account; and (C) not be assessed for the purpose of circumvention or evasion of this article, as determined by the department. (4) With respect to a debt secured by an interest in land, the following closing costs, if they are bona fide, reasonable in amount, and not for the purpose of circumvention or evasion of this article: (A) Fees for title examination, abstract of title, title insurance, property surveys, or similar purposes. (B) Fees for preparing deeds, mortgages, and reconveyance, settlement, and similar documents. (C) Notary and credit report fees. (D) Amounts required to be paid into escrow or trustee accounts if the amounts would not otherwise be included in the loan finance charge. (E) Appraisal fees. (5) Notwithstanding provisions of the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) concerning disclosure, charges for other benefits, including insurance, conferred on the debtor, if the benefits are of value to the debtor and if the charges are reasonable in relation to the benefits, and are excluded as permissible additional charges from the loan finance charge. With respect to any other additional charge not specifically provided for in this section to be a permitted charge under this subsection, the creditor must submit a written explanation of the charge to the department indicating how the charge would be assessed and the value or benefit to the debtor. Supporting documents may be required by the department. The department shall determine whether the charge would be of benefit to the debtor and is reasonable in relation to the benefits. (6) A charge not to exceed twenty-five dollars ($25) for each returned payment by a bank or other depository institution of a dishonored check, electronic funds transfer, negotiable order of withdrawal, or share draft issued by the debtor. (7) With respect to a revolving loan account, a fee not to exceed twenty-five dollars ($25) in each billing cycle during which the balance due under the revolving loan account exceeds by more than one hundred dollars ($100) the maximum credit limit for the account established by the lender. (8) With respect to a revolving loan account, a transaction fee that may not exceed the greater of the following: (A) Two percent (2%) of the amount of the transaction. (B) Ten dollars ($10). (9) A charge not to exceed twenty-five dollars ($25) for a skip-a-payment service, subject to the following: (A) At the time of use of the service, the consumer must be given written notice of the amount of the charge and must acknowledge the amount in writing, including by electronic signature. (B) A charge for a skip-a-payment service may not be assessed with respect to a consumer loan subject to the provisions on rebate upon prepayment that are set forth in section 13 of this chapter. (C) A charge for a skip-a-payment service may not be assessed with respect to any payment for which a delinquency charge has been assessed under section 6 of this chapter. (10) A charge not to exceed ten dollars ($10) for an optional expedited payment service, subject to the following: (A) The charge may be assessed only upon request by the consumer to use the expedited payment service. (B) The amount of the charge must be disclosed to the consumer at the time of the consumer's request to use the expedited payment service. (C) The consumer must be informed that the consumer retains the option to make a payment by traditional means. (D) The charge may not be established in advance, through any agreement with the consumer, as the expected method of payment. (E) The charge may not be assessed with respect to any payment for which a delinquency charge has been assessed under section 6 of this chapter. (11) A charge for a GAP agreement, subject to subsection (c). (12) With respect to consumer loans made by a person exempt from licensing under section 24(a) of this chapter, a charge for a debt cancellation agreement, subject to the following: (A) A debt cancellation agreement or debt cancellation coverage may not be required by the lender, and that fact must be disclosed in writing to the consumer. (B) The charge for the initial term of coverage under the debt cancellation agreement must be disclosed in writing to the consumer. The charge may be disclosed on a unit-cost basis only in the case of revolving loan accounts, closed-end credit transactions if the request for coverage is made by mail or telephone, and closed-end credit transactions if the debt cancellation agreement limits the total amount of indebtedness eligible for coverage. (C) If the term of coverage under the debt cancellation agreement is less than the term of the consumer loan, the term of coverage under the debt cancellation agreement must be disclosed in writing to the consumer. (D) The consumer must sign or initial an affirmative written request for coverage after receiving all required disclosures. (E) If debt cancellation coverage for two (2) or more events is provided for in a single charge under a debt cancellation agreement, the entire charge may be excluded from the loan finance charge and imposed as an additional charge under this section if at least one (1) of the events is the loss of life, health, or income. The additional charges provided for in subdivisions (7) through (10) are not subject to refund or rebate. (b) An additional charge may be made for insurance in connection with the loan, other than insurance protecting the lender against the debtor's default or other credit loss: (1) with respect to insurance against loss of or damage to property or against liability, if the lender furnishes a clear and specific statement in writing to the debtor, setting forth the cost of the insurance if obtained from or through the lender and stating that the debtor may choose the person, subject to the lender's reasonable approval, through whom the insurance is to be obtained; and (2) with respect to consumer credit insurance providing life, accident, unemployment or other loss of income, or health coverage, if the insurance coverage is not a factor in the approval by the lender of the extension of credit and this fact is clearly disclosed in writing to the debtor, and if, in order to obtain the insurance in connection with the extension of credit, the debtor gives specific affirmative written indication of the desire to do so after written disclosure of the cost of the insurance. (c) An additional charge may be made for a GAP agreement, subject to the following: (1) A GAP agreement or GAP coverage may not be required by the lender, and that fact must be disclosed in writing to the consumer. (2) The charge for the initial term of coverage under the GAP agreement must be disclosed in writing to the consumer. The charge may be disclosed on a unit-cost basis only in the case of the following transactions: (A) Revolving loan accounts. (B) Closed-end credit transactions, if the request for coverage is made by mail or telephone. (C) Closed-end credit transactions, if the GAP agreement limits the total amount of indebtedness eligible for coverage. (3) If the term of coverage under the GAP agreement is less than the term of the consumer loan, the term of coverage under the GAP agreement must be disclosed in writing to the consumer. (4) The consumer must sign or initial an affirmative written request for coverage after receiving all required disclosures. (5) The GAP agreement must include the following: (A) In the case of GAP coverage for a new motor vehicle, the manufacturer's suggested retail price (MSRP) for the motor vehicle. (B) In the case of GAP coverage for a used motor vehicle, the average retail value for the motor vehicle, as determined by use of a third party valuation service provider that is customarily relied upon in the used motor vehicle commercial marketplace. (C) The name of the financing entity taking assignment of the agreement, as applicable. (D) The name and address of the consumer. (E) The name of the lender selling the agreement. (F) Information advising the consumer that the consumer may be able to obtain similar coverage from the consumer's primary insurance carrier. (G) A coverage provision that includes a minimum deductible of five hundred dollars ($500). (H) A provision providing for a minimum thirty (30) day trial period. (I) In the case of a consumer loan made with respect to a motor vehicle, a provision excluding the sale of GAP coverage if the amount financed under the consumer loan (not including the cost of the GAP agreement, the cost of any credit insurance, and the cost of any warranties or service agreements) is less than eighty percent (80%) of the manufacturer's suggested retail price (MSRP), in the case of a new motor vehicle, or of the average retail value (as determined by use of a third party valuation service provider that is customarily relied upon in the used motor vehicle commercial marketplace), in the case of a used motor vehicle. (J) In the case of a GAP agreement in which the charge for the agreement exceeds four hundred dollars ($400), specific instructions that may be used by the consumer to cancel the agreement and obtain a refund of the unearned GAP charge before prepayment in full, in accordance with the procedures, and subject to the conditions, set forth in subdivision (6). (6) If the charge for the GAP agreement exceeds four hundred dollars ($400), the consumer is entitled to cancel the agreement and obtain a refund of the unearned GAP charge before prepayment in full. Refunds of unearned GAP charges shall be made subject to the following conditions: (A) A refund of the charge for a GAP agreement must be calculated using a method that is no less favorable to the consumer than a refund calculated on a pro rata basis. (B) The consumer is entitled to a refund of the unearned GAP agreement charge as outlined in the GAP agreement. (C) The seller of the GAP agreement, or the seller's assignee, is responsible for making a timely refund to the consumer of unearned GAP agreement charges under the terms and conditions of the GAP agreement. (7) Upon prepayment in full of the consumer loan: (A) the GAP coverage is automatically terminated; and (B) the seller of the GAP agreement must issue a refund in accordance with subdivision (6). (8) A lender that sells GAP agreements must: (A) insure its GAP agreement obligations under a contractual liability insurance policy issued by an insurer authorized to engage in the insurance business in Indiana; and (B) retain appropriate records, as required under this article, regarding GAP agreements sold, refunded, and expired. [Pre-2026 Revision Citations: 24-4.5-3-202(1); 24-4.5-3-202(2); 24-4.5-3-202(3).] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-6 Delinquency charges; conversion of precomputed loan to loan with finance charge based on unpaid balances

Sec. 6. (a) With respect to a consumer loan, refinancing, or consolidation, the parties may contract for a delinquency charge of not more than the following: (1) Five dollars ($5) on any installment or minimum payment due that is not paid in full not later than ten (10) days after its scheduled due date, in the case of a consumer loan, refinancing, or consolidation that is made before July 1, 2019. The amount of five dollars ($5) in this subdivision is subject to change under IC 37-2-1-5. In addition, the parties may provide by contract for a delinquency charge that is subject to change. If the parties provide by contract for a delinquency charge that is subject to change, the lender shall disclose in the contract that the amount of the delinquency charge is subject to change under IC 37-2-1-5 or this section. (2) In the case of a consumer loan, refinancing, or consolidation that is made after June 30, 2019, the following: (A) Five dollars ($5) on any installment or minimum payment due that is not paid in full not later than ten (10) days after its scheduled due date, if installments under the consumer loan, refinancing, or consolidation are due every fourteen (14) days or less. The amount of five dollars ($5) in this clause is not subject to change under IC 37-2-1-5. (B) Twenty-five dollars ($25) on any installment or minimum payment due that is not paid in full not later than ten (10) days after its scheduled due date, if installments under the consumer loan, refinancing, or consolidation are due every fifteen (15) days or more. The amount of twenty-five dollars ($25) in this clause is not subject to change under IC 37-2-1-5. (C) Twenty-five dollars ($25) on any installment or minimum payment due that is not paid in full not later than ten (10) days after its scheduled due date, in the case of a consumer loan, refinancing, or consolidation that is payable in a single installment that is due at least thirty (30) days after the consumer loan, refinancing, or consolidation is made. The amount of twenty-five dollars ($25) in this clause is not subject to change under IC 37-2-1-5. (b) A delinquency charge under this section may be collected only once on an installment however long it remains in default. With regard to a delinquency charge on consumer loans made under a revolving loan account, the delinquency charge may be applied each month that the payment is less than the minimum required payment on the account. A delinquency charge may be collected any time after it accrues. A delinquency charge may not be collected if: (1) the installment has been deferred and a deferral charge under section 7 of this chapter has been paid or incurred; (2) a charge for a skip-a-payment service under section 5(a)(9) of this chapter has been paid or incurred, as provided in section 5(a)(9)(C) of this chapter; or (3) a charge for an optional expedited payment service under section 5(a)(10) of this chapter has been paid or incurred, as provided in section 5(a)(10)(E) of this chapter. (c) A creditor may not, directly or indirectly, charge or collect a delinquency charge on a payment that: (1) is paid not later than ten (10) days after its scheduled due date; and (2) is otherwise a full payment of the payment due for the applicable installment period; if the only delinquency with respect to the consumer loan, refinancing, or consolidation is attributable to a delinquency charge assessed on an earlier installment. (d) If two (2) or more installments, or parts of two (2) or more installments, of a precomputed loan are in default for ten (10) days or more, the lender may elect to convert the loan from a precomputed loan to a loan in which the finance charge is based on unpaid balances. A lender that makes this election shall make a rebate under the provisions on rebates upon prepayment set forth in section 13 of this chapter as of the maturity date of the first delinquent installment, and thereafter may make a loan finance charge as authorized by the provisions on loan finance charges for consumer loans (section 4 of this chapter) or supervised loans (section 35 of this chapter). The amount of the rebate shall not be reduced by the amount of any permitted minimum charge under section 13 of this chapter. Any deferral charges made on installments due at or after the maturity date of the first delinquent installment shall be rebated, and no further deferral charges shall be made. [Pre-2026 Revision Citation: 24-4.5-3-203.5.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-7 Deferral charges

Sec. 7. (a) This section applies only to a consumer loan, refinancing, or consolidation, that is entered into before July 1, 2020. With respect to a precomputed consumer loan, refinancing, or consolidation, the parties before or after default may agree in writing to a deferral of all or part of one (1) or more unpaid installments, and the lender may make and collect a charge not exceeding the lesser of thirty-six percent (36%) per year or the rate previously stated to the debtor pursuant to section 14 of this chapter applied to the amount or amounts deferred for the period of deferral calculated without regard to difference in the lengths of months, but proportionally for a part of a month, counting each day as one-thirtieth (1/30) of a month. A deferral charge may be collected at the time it is assessed or at any time thereafter. (b) The lender, in addition to the deferral charge, may make appropriate additional charges under section 5 of this chapter, and the amount of these charges which is not paid in cash may be added to the amount deferred for the purpose of calculating the deferral charge. (c) The parties may agree in writing at the time of a precomputed consumer loan, refinancing, or consolidation that if an installment is not paid within ten (10) days after its due date, the lender may unilaterally grant a deferral and make charges as provided in this section. No deferral charge may be made for a period after the date that the lender elects to accelerate the maturity of the agreement. (d) A delinquency charge made by the lender on an installment may not be retained if a deferral charge is made pursuant to this section with respect to the period of delinquency. [Pre-2026 Revision Citation: 24-4.5-3-204.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-8 Loan financing charge on refinancing

Sec. 8. With respect to a consumer loan, refinancing, or consolidation, the lender may by agreement with the debtor refinance the unpaid balance and may contract for and receive a loan finance charge based on the principal resulting from the refinancing at a rate not exceeding that permitted by the provisions on a loan finance charge for consumer loans (section 4 of this chapter) or the provisions on a loan finance charge for supervised loans (section 35 of this chapter), whichever is appropriate. For the purpose of determining the loan finance charge permitted, the principal resulting from the refinancing comprises the following: (1) If: (A) the transaction was not precomputed, the total of the unpaid balance and the accrued charges on the date of the refinancing; or (B) the transaction was precomputed, in the case of a transaction entered into before July 1, 2020, the amount which the debtor would have been required to pay upon prepayment pursuant to the provisions on rebate upon prepayment under section 13 of this chapter on the date of refinancing. (2) Appropriate additional charges under section 5 of this chapter, payment of which is deferred. [Pre-2026 Revision Citation: 24-4.5-3-205.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-9 Loan finance charge on consolidation

Sec. 9. (a) If a debtor owes an unpaid balance to a lender with respect to a consumer loan, refinancing, or consolidation, and becomes obligated on another consumer loan, refinancing, or consolidation with the same lender, the parties may agree to a consolidation resulting in a single schedule of payments. If the previous consumer loan, refinancing, or consolidation was not precomputed, the parties may agree to add the unpaid amount of principal and accrued charges on the date of consolidation to the principal with respect to the subsequent loan. If the previous consumer loan, refinancing, or consolidation was precomputed, in the case of a transaction entered into before July 1, 2020, the parties may agree to refinance the unpaid balance pursuant to the provisions on refinancing set forth in section 8 of this chapter and to consolidate the principal resulting from the refinancing by adding it to the principal with respect to the subsequent loan. In either case the lender may contract for and receive a loan finance charge based on the aggregate principal resulting from the consolidation at a rate not in excess of that permitted by the provisions on loan finance charge for consumer loans (section 4 of this chapter) or the provisions on loan finance charge for supervised loans (section 35 of this chapter), whichever is appropriate. (b) The parties may agree to consolidate the unpaid balance of a consumer loan with the unpaid balance of a consumer credit sale. The parties may agree to refinance the previous unpaid balance pursuant to the provisions on refinancing sales set forth in IC 37-2-3-8 or the provisions on refinancing loans set forth in section 8 of this chapter, whichever is appropriate, and to consolidate the amount financed resulting from the refinancing or the principal resulting from the refinancing by adding it to the amount financed or principal with respect to the subsequent sale or loan. The aggregate amount resulting from the consolidation shall be deemed principal, and the creditor may contract for and receive a loan finance charge based on the principal at a rate not in excess of that permitted by the provisions on loan finance charge for consumer loans set forth in section 4 of this chapter or the provisions on loan finance charge for supervised loans set forth in section 35 of this chapter, whichever is appropriate. [Pre-2026 Revision Citation: 24-4.5-3-206.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-10 Conversion to revolving loan account

Sec. 10. The parties may agree to add to a revolving loan account the unpaid balance of a consumer loan, not made pursuant to a revolving loan account, or a refinancing, or consolidation thereof, or the unpaid balance of a consumer credit sale, refinancing or consolidation. For the purpose of this section: (1) the unpaid balance of a consumer loan, refinancing, or consolidation is an amount equal to the principal determined according to the provisions on refinancing set forth in section 8 of this chapter; and (2) the unpaid balance of a consumer credit sale, refinancing, or consolidation is an amount equal to the amount financed determined according to the provisions on refinancing set forth in IC 37-2-3-8. [Pre-2026 Revision Citation: 24-4.5-3-207.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-11 Advances to perform covenants of debtor

Sec. 11. (a) If the agreement with respect to a consumer loan, refinancing, or consolidation contains covenants by the debtor to perform certain duties pertaining to insuring or preserving collateral and if the lender pursuant to the agreement pays for performance of the duties on behalf of the debtor, the lender may add the amounts paid to the debt. Within a reasonable time after advancing any sums, the lender shall state to the debtor in writing the amount of the sums advanced, any charges with respect to this amount, and any revised payment schedule and, if the duties of the debtor performed by the lender pertain to insurance, a brief description of the insurance paid for by the lender including the type and amount of coverages. No further information need be given. (b) A loan finance charge may be made for sums advanced pursuant to subsection (a) at a rate not exceeding the rate stated to the debtor pursuant to section 14 of this chapter with respect to the loan, refinancing, or consolidation, except that with respect to a revolving loan account the amount of the advance may be added to the unpaid balance of the debt and the lender may make a loan finance charge not exceeding that permitted by the provisions on loan finance charge for consumer loans set forth in section 4 of this chapter or for supervised loans set forth in section 35 of this chapter, whichever is appropriate. [Pre-2026 Revision Citation: 24-4.5-3-208.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-12 Right to prepay; prepayment penalty; total finance charge; payoff statement; liability for failure to provide; short sales; foreclosed property; no protection from deficiency judgment

Sec. 12. (a) Subject to the provisions on rebate upon prepayment set forth in section 13 of this chapter, the debtor may prepay in full the unpaid balance of a consumer loan, refinancing, or consolidation at any time without penalty. With respect to a consumer loan that is primarily secured by an interest in land, a lender may contract for a penalty for prepayment of the loan in full, not to exceed two percent (2%) of any amount prepaid within sixty (60) days of the date of the prepayment in full, after deducting all refunds and rebates as of the date of the prepayment. However, the penalty may not be imposed: (1) if the loan is refinanced or consolidated with the same creditor; (2) for prepayment by proceeds of any insurance or acceleration after default; or (3) after three (3) years from the contract date. For purposes of this section, the collection of the amount of any conditionally waived closing costs (as allowed under section 5 of this chapter) by a creditor, as stipulated in the loan agreement, at the time of prepayment in full does not constitute a prepayment penalty and is not subject to the limitations set forth in this subsection. (b) At the time of prepayment of a consumer loan not subject to the provisions of rebate upon prepayment set forth in section 13 of this chapter, the total finance charge, including the prepaid finance charge but excluding the nonrefundable prepaid finance charge allowed under section 4(i) or section 35(h) of this chapter, as applicable, may not exceed the maximum charge allowed under this chapter for the period the loan was in effect. For the purposes of determining compliance with this subsection, the total finance charge does not include the following: (1) The nonrefundable prepaid finance charge allowed under section 4(i) or section 35(h) of this chapter, as applicable. (2) The debtor paid mortgage broker fee, if any, paid to a person who does not control, is not controlled by, or is not under common control with, the creditor holding the loan at the time a consumer loan is prepaid. (c) The creditor or mortgage servicer shall provide, in writing, an accurate payoff amount for the consumer loan to the debtor within seven (7) business days (excluding legal public holidays, Saturdays, and Sundays) after the creditor or mortgage servicer receives the debtor's written request for the accurate consumer loan payoff amount. A payoff statement provided by a creditor or mortgage servicer under this subsection must show the date the statement was prepared and itemize the unpaid principal balance and each fee, charge, or other sum included within the payoff amount. A creditor or mortgage servicer who fails to provide the accurate consumer loan payoff amount is liable for: (1) one hundred dollars ($100) if an accurate consumer loan payoff amount is not provided by the creditor or mortgage servicer within seven (7) business days (excluding legal public holidays, Saturdays, and Sundays) after the creditor or mortgage servicer receives the debtor's first written request; and (2) the greater of: (A) one hundred dollars ($100); or (B) the loan finance charge that accrues on the loan from the date the creditor or mortgage servicer receives the first written request until the date on which the accurate consumer loan payoff amount is provided; if an accurate consumer loan payoff amount is not provided by the creditor or mortgage servicer within seven (7) business days (excluding legal public holidays, Saturdays, and Sundays) after the creditor or mortgage servicer receives the debtor's second written request, and the creditor or mortgage servicer failed to comply with subdivision (1). A liability under this subsection is an excess charge under IC 37-2-6-9. (d) As used in this subsection, "mortgage transaction" means a consumer loan in which a mortgage or a land contract (or another consensual security interest equivalent to a mortgage or a land contract) that constitutes a lien is created or retained against land upon which there is constructed or intended to be constructed a dwelling that is or will be used by the debtor primarily for personal, family, or household purposes. This subsection applies to a mortgage transaction with respect to which any installment or minimum payment due is delinquent for at least sixty (60) days. The creditor, servicer, or the creditor's agent shall acknowledge a written offer made in connection with a proposed short sale not later than five (5) business days (excluding legal public holidays, Saturdays, and Sundays) after the date of the offer if the offer complies with the requirements for a qualified written request set forth in 12 U.S.C. 2605(e)(1)(B). The creditor, servicer, or creditor's agent is required to acknowledge a written offer made in connection with a proposed short sale from a third party acting on behalf of the debtor only if the debtor has provided written authorization for the creditor, servicer, or creditor's agent to do so. Not later than thirty (30) business days (excluding legal public holidays, Saturdays, and Sundays) after receipt of an offer under this subsection, the creditor, servicer, or creditor's agent shall respond to the offer with an acceptance or a rejection of the offer. The thirty (30) day period described in this subsection may be extended for not more than fifteen (15) business days (excluding legal public holidays, Saturdays, and Sundays) if, before the end of the thirty (30) day period, the creditor, the servicer, or the creditor's agent notifies the debtor of the extension and the reason the extension is needed. Payment accepted by a creditor, servicer, or creditor's agent in connection with a short sale constitutes payment in full satisfaction of the mortgage transaction unless the creditor, servicer, or creditor's agent obtains either: (1) a statement that: "The debtor remains liable for any amount still owed under the mortgage transaction."; or (2) a statement substantially similar to the statement set forth in subdivision (1); acknowledged by the initials or signature of the debtor, on or before the date on which the short sale payment is accepted. As used in this subsection, "short sale" means a transaction in which the property that is the subject of a mortgage transaction is sold for an amount that is less than the amount of the debtor's outstanding obligation under the mortgage transaction. A creditor or mortgage servicer that fails to respond to an offer within the time prescribed by this subsection is liable in accordance with 12 U.S.C. 2605(f) in any action brought under that section. (e) This section is not intended to provide the owner of real estate subject to the issuance of process under a judgment or decree of foreclosure any protection or defense against a deficiency judgment for purposes of the borrower protections from liability that must be disclosed under 12 CFR 1026.38(p)(3) on the form required by 12 CFR 1026.38 ("Closing Disclosures" form under the Amendments to the 2013 Integrated Mortgage Disclosures Rule Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z) and the 2013 Loan Originator Rule Under the Truth in Lending Act (Regulation Z)). [Pre-2026 Revision Citation: 24-4.5-3-209.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-13 Rebate upon prepayment

Sec. 13. (a) Except for subsections (b) and (i), this section applies only to a loan agreement entered into before July 1, 2020. Except as provided in subsection (b), upon prepayment in full of the unpaid balance of a precomputed consumer loan, refinancing, or consolidation, an amount not less than the unearned portion of the loan finance charge calculated according to this section shall be rebated to the debtor. If the rebate otherwise required is less than one dollar ($1), no rebate need be made. (b) Upon prepayment in full of a consumer loan, refinancing, or consolidation, other than one under a revolving loan account, if the loan finance charge earned is less than any permitted minimum loan finance charge under section 4(g) or 35(g) of this chapter contracted for, whether or not the consumer loan, refinancing, or consolidation is precomputed, the lender may collect or retain the minimum loan finance charge, as if earned, not exceeding the loan finance charge contracted for. (c) The unearned portion of the loan finance charge is a fraction of the loan finance charge of which the numerator is the sum of the periodic balances scheduled to follow the computational period in which prepayment occurs, and the denominator is the sum of all periodic balances under either the loan agreement or, if the balance owing resulted from a refinancing under section 8 of this chapter or a consolidation under section 9 of this chapter, under the refinancing agreement or consolidation agreement. (d) In this section: (1) "periodic balance" means the amount scheduled to be outstanding on the last day of a computational period before deducting the payment, if any, scheduled to be made on that day; (2) "computation period" means one (1) month if one-half (1/2) or more of the intervals between scheduled payments under the agreement is one (1) month or more, and otherwise means one (1) week; (3) the "interval" to the due date of the first scheduled installment or the final scheduled payment date is measured from the date of a loan, refinancing, or consolidation, and includes either the first or last day of the interval; and (4) if the interval to the due date of the first scheduled installment does not exceed one (1) month by more than fifteen (15) days when the computational period is one (1) month, or eleven (11) days when the computational period is one (1) week, the interval shall be considered as one (1) computational period. (e) This subsection applies only if the schedule of payments is not regular. (1) If the computational period is one (1) month and: (A) if the number of days in the interval to the due date of the first scheduled installment is less than one (1) month by more than five (5) days, or more than one (1) month by more than five (5) but not more than fifteen (15) days, the unearned loan finance charge shall be increased by an adjustment for each day by which the interval is less than one (1) month and, at the option of the lender, may be reduced by an adjustment for each day by which the interval is more than one (1) month; the adjustment for each day shall be one-thirtieth (1/30) of that part of the loan finance charge earned in the computational period prior to the due date of the first scheduled installment assuming that period to be one (1) month; and (B) if the interval to the final scheduled payment date is a number of computational periods plus an additional number of days less than a full month, the additional number of days shall be considered a computational period only if sixteen (16) days or more. This clause applies whether or not clause (A) applies. (2) Notwithstanding subdivision (1), if the computational period is one (1) month, the number of days in the interval to the due date of the first installment exceeds one (1) month by not more than fifteen (15) days, and the schedule of payments is otherwise regular, the lender, at the lender's option, may exclude the extra days and the charge for the extra days in computing the unearned loan finance charge; but if the lender does so and a rebate is required before the due date of the first scheduled installment, the lender shall compute the earned charge for each elapsed day as one-thirtieth (1/30) of the amount the earned charge would have been if the first interval had been one (1) month. (3) If the computational period is one (1) week and: (A) if the number of days in the interval to the due date of the first scheduled installment is less than five (5) days, or more than nine (9) days, but not more than eleven (11) days, the unearned loan finance charge shall be increased by an adjustment for each day by which the interval is less than seven (7) days and, at the option of the lender, may be reduced by an adjustment for each day by which the interval is more than seven (7) days; the adjustment for each day shall be one-seventh (1/7) of that part of the loan finance charge earned in the computational period prior to the due date of the first scheduled installment, assuming that period to be one (1) week; and (B) if the interval to the final scheduled payment date is a number of computational periods plus an additional number of days less than a full week, the additional number of days shall be considered a computational period only if five (5) days or more. This clause applies whether or not clause (A) applies. (f) If a deferral has been agreed to under section 7 of this chapter, the unearned portion of the loan finance charge shall be computed without regard to the deferral. The amount of deferral charge earned at the date of prepayment shall also be calculated. If the deferral charge earned is less than the deferral charge paid, the difference shall be added to the unearned portion of the loan finance charge. If any part of a deferral charge has been earned but has not been paid, that part shall be subtracted from the unearned portion of the loan finance charge or shall be added to the unpaid balance. (g) This section does not preclude the collection or retention by the lender of delinquency charges under section 6 of this chapter. (h) If the maturity is accelerated for any reason and judgment is obtained, the debtor is entitled to the same rebate as if payment had been made on the date judgment is entered. (i) Upon prepayment in full of a consumer loan by the proceeds of consumer credit insurance, the debtor or the debtor's estate shall pay the same loan finance charge or receive the same rebate as though the debtor had prepaid the agreement on the date the proceeds of the insurance are paid to the lender, but no later than ten (10) business days after satisfactory proof of loss is furnished to the lender. This subsection applies whether or not the loan is precomputed. (j) Upon prepayment in full of a transaction with a term of more than sixty-one (61) months, the unearned loan finance charge shall be computed by applying the disclosed annual percentage rate that would yield the loan finance charge originally contracted for to the unpaid balances of the amount financed for the full computational periods following the prepayment, as originally scheduled or as deferred. [Pre-2026 Revision Citation: 24-4.5-3-210.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-14 Disclosures prohibited by Consumer Credit Protection Act; exempt transactions

Sec. 14. (a) For the purposes of this section, "consumer loan" includes a loan that is a first lien mortgage transaction if the loan is otherwise a consumer loan. (b) The lender shall disclose to the debtor to whom credit is extended with respect to a consumer loan the information required by the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.). (c) For purposes of subsection (b), disclosures shall not be required on a consumer loan if the transaction is exempt from the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.). [Pre-2026 Revision Citation: 24-4.5-3-301.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-15 Balloon payments; compliance with Alternative Mortgage Transaction Parity Act

Sec. 15. (a) This section does not apply to a first lien mortgage transaction. (b) Except as provided in IC 37-5-4-3 with respect to a high cost home loan (as defined in IC 37-5-2-8), with respect to a consumer loan, other than one pursuant to a revolving loan account or one on which only loan finance charges are payable prior to the time that the final scheduled payment is due, if any scheduled payment is more than twice as large as the average of earlier scheduled payments, the debtor has the right to refinance the amount of that payment at the time it is due without penalty. The terms of the refinancing shall be no less favorable to the debtor than the terms of the original loan. This section does not apply to the extent that the payment schedule is adjusted to the seasonal or irregular income of the debtor. (c) For the purposes of this section, "terms of the refinancing" means: (1) in the case of a fixed-rate consumer loan, the individual payment amounts, the charges as a result of default by the debtor, and the rate of the loan finance charge; and (2) in the case of a variable rate consumer loan, the method used to determine the individual payment amounts, the charges as a result of default by the debtor, the method used to determine the rate of the loan finance charge, the circumstances under which the rate of the loan finance charge may increase, and any limitations on the increase in the rate of the loan finance charge. (d) If a consumer loan is made under the authority of the Alternative Mortgage Transaction Parity Act (12 U.S.C. 3802 et seq.), the note evidencing the mortgage must contain a reference to the applicable federal law. [Pre-2026 Revision Citation: 24-4.5-3-402.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-16 No assignment of earnings

Sec. 16. (a) A lender may not take an assignment of earnings of the debtor for payment or as security for payment of a debt arising out of a consumer loan or otherwise. An assignment of earnings in violation of this section is unenforceable by the assignee of the earnings and revocable by the debtor. This section does not prohibit an employee from authorizing deductions from his earnings if the authorization is revocable and is otherwise permitted by law. (b) A sale of unpaid earnings made in consideration of the payment of money to or for the account of the seller of the earnings is deemed to be a loan to the seller secured by an assignment of earnings. [Pre-2026 Revision Citation: 24-4.5-3-403.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-17 Attorney's fees

Sec. 17. With respect to a consumer loan the agreement may provide for the payment by the debtor of reasonable attorney's fees after default and referral to an attorney not a salaried employee of the lender. A provision in violation of this section is unenforceable. [Pre-2026 Revision Citation: 24-4.5-3-404.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-18 Limitation on default charges

Sec. 18. Except for reasonable expenses incurred in realizing on a security interest, the agreement with respect to a consumer loan may not provide for charges as a result of default by the debtor other than those authorized by this article. A provision in violation of this section is unenforceable. [Pre-2026 Revision Citation: 24-4.5-3-405.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-19 Notice of assignment

Sec. 19. The debtor is authorized to pay the original lender until the debtor receives notification of assignment of rights to payment pursuant to a consumer loan and that payment is to be made to the assignee. A notification which does not reasonably identify the rights assigned is ineffective. If requested by the debtor, the assignee must seasonably furnish reasonable proof that the assignment has been made and unless the assignee does so the debtor may pay the original lender. [Pre-2026 Revision Citation: 24-4.5-3-406.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-20 Authorization to confess judgment prohibited

Sec. 20. A debtor may not authorize any person to confess judgment on a claim arising out of a consumer loan. An authorization in violation of this section is void. [Pre-2026 Revision Citation: 24-4.5-3-407.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-21 Creditor's duty to credit payment as of date of receipt; payments not conforming to requirements; creditor's failure to credit payment

Sec. 21. (a) This section applies to consumer loans, including revolving loan accounts. (b) Except as provided in subsection (c), a creditor shall credit a payment to a consumer's account as of the date of receipt, except when a delay in crediting does not result in a finance charge or other charge, including a delinquency charge under section 6 of this chapter. A delay in posting does not violate this section so long as the payment is credited as of the date of receipt. (c) If a creditor specifies in writing requirements for the consumer to follow in making payments, but accepts a payment that does not conform to the requirements, the creditor shall credit the payment within five (5) days of receipt of the payment. (d) If a creditor fails to credit a payment as required by this section in time to avoid the imposition of a finance or other charge, including a delinquency charge, the creditor shall adjust the consumer's account so that the charges imposed are credited to the consumer's account during the next payment period. [Pre-2026 Revision Citation: 24-4.5-3-408.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-22 Persons also engaging in activities of a loan broker; examination by department; cooperation with securities division

Sec. 22. (a) If a person licensed or required to be licensed under section 24 of this chapter also engages in activities of a loan broker described in IC 23-2.5, the activities of a loan broker are subject to the following sections of the Indiana Code and any rules adopted to implement these sections: (1) IC 23-2.5-8-1, except for IC 23-2.5-8-1(b)(2). (2) IC 23-2.5-8-2. (3) IC 23-2.5-11-15(b) and IC 23-2.5-11-15(c). (4) IC 23-2.5-11-17. (5) IC 23-2.5-8-3. (6) IC 23-2.5-8-4 through IC 23-2.5-8-9. (7) IC 23-2.5-8-10. (8) IC 23-2.5-10-1. (9) IC 23-2.5-9-1. (10) IC 23-2.5-11-16. (b) Loan broker business transactions engaged in by persons licensed or required to be licensed under section 24 of this chapter are subject to examination by the department and to the examination fees described in section 26(h)(2) of this chapter. The department may cooperate with the securities division of the office of the secretary of state in the department's examination of loan broker business transactions and may use the securities division's examiners to conduct examinations. [Pre-2026 Revision Citation: 24-4.5-3-501.5.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-23 Authority to make, take assignment of, or collect consumer loans other than mortgage transactions; license required; exempt persons; branches; separate license required for small loans

Sec. 23. (a) A person that is a: (1) depository institution; (2) subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; or (3) credit union service organization; may engage in Indiana in the making of consumer loans (including small loans that are subject to IC 37-3) that are not mortgage transactions without obtaining a license under this article. (b) A collection agency licensed under IC 25-11-1 may engage in: (1) taking assignments of consumer loans (including small loans that are subject to IC 37-3) that are not mortgage transactions; and (2) undertaking the direct collection of payments from or the enforcement of rights against debtors arising from consumer loans (including small loans that are subject to IC 37-3) that are not mortgage transactions; in Indiana without obtaining a license under this article. (c) A person that does not qualify under subsection (a) or (b) shall acquire and retain a license under this chapter in order to regularly engage in Indiana in the following actions with respect to consumer loans that are not small loans (as defined in IC 37-3-2) or mortgage transactions: (1) The making of consumer loans. (2) Taking assignments of consumer loans. (3) Undertaking the direct collection of payments from or the enforcement of rights against debtors arising from consumer loans. (d) A separate license under this chapter is required for each legal entity that engages in Indiana in any activity described in subsection (c). However, a separate license under this chapter is not required for each branch of a legal entity licensed under this chapter to perform an activity described in subsection (c). (e) Except as otherwise provided in subsections (a) and (b), a separate license under IC 37-3 is required in order to regularly engage in Indiana in the following actions with respect to small loans (as defined in IC 37-3-2): (1) The making of small loans (as defined in IC 37-3-2). (2) Taking assignments of small loans (as defined in IC 37-3-2). (3) Undertaking the direct collection of payments from or the enforcement of rights against debtors arising from small loans (as defined in IC 37-3-2). A person that seeks licensure under IC 37-3 in order to regularly engage in Indiana in the actions set forth in this subsection shall apply to the department for that license in the form and manner prescribed by the department, and is subject to the same licensure requirements and procedures as an applicant for a license to make consumer loans (other than small loans or mortgage transactions) under this section. [Pre-2026 Revision Citation: 24-4.5-3-502.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-24 Authority to make, take assignment of, or collect subordinate lien mortgage transactions; license required; exempt persons; registration with NMLSR; licensed mortgage loan originators; applications for licensure; director's authority to contract with NMLSR

Sec. 24. (a) A person that is a: (1) depository institution; (2) subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; or (3) credit union service organization; may engage in Indiana in the making of subordinate lien mortgage transactions without obtaining a mortgage license issued by the department. (b) A collection agency licensed under IC 25-11-1 or an institution regulated by the Farm Credit Administration may engage in: (1) taking assignments of subordinate lien mortgage transactions; and (2) undertaking the direct collection of payments from or the enforcement of rights against debtors arising from subordinate lien mortgage transactions; in Indiana without obtaining a mortgage license issued by the department. (c) A person that is not otherwise exempt under subsection (a) or (b) shall acquire and retain a mortgage license issued by the department in order to regularly engage in Indiana in the following actions with respect to subordinate lien mortgage transactions: (1) The making of subordinate lien mortgage loans. (2) Taking assignments of subordinate lien mortgage loans. (3) Undertaking the direct collection of payments from or the enforcement of rights against debtors arising from subordinate lien mortgage loans. (d) Each: (1) creditor licensed by the department to engage in subordinate lien mortgage transactions; and (2) person that is exempt (either under this article or under IC 37-1-1-6(8)) from licensing and that: (A) employs a licensed mortgage loan originator; or (B) sponsors a licensed mortgage loan originator as permitted by IC 37-1-1-6(8) or by 750 IAC 9; shall register with and maintain a valid unique identifier issued by the NMLSR. Each licensed mortgage loan originator must be employed by, or sponsored as permitted by IC 37-1-1-6(8) or by 750 IAC 9, and associated with, a licensed creditor (or an exempt person described under subdivision (2)) that is registered with the NMLSR. (e) Applicants for a mortgage license must apply to the department for the license in a form prescribed by the director. Each form: (1) must contain content as set forth by rule, instruction, or procedure of the director; and (2) may be changed or updated as necessary by the director to carry out the purposes of this article. (f) To fulfill the purposes of this article, the director may establish relationships or contracts with the NMLSR or other entities designated by the NMLSR to: (1) collect and maintain records; and (2) process transaction fees or other fees; related to licensees or other persons subject to this article. (g) For the purpose of participating in the NMLSR, the director or the department may: (1) waive or modify, in whole or in part, by rule, regulation, or order, any or all of the requirements of this article; and (2) establish new requirements as reasonably necessary to participate in the NMLSR. [Pre-2026 Revision Citation: 24-4.5-3-502.1.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-25 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

Sec. 25. (a) Subject to subsection (f), the director may designate the NMLSR to serve as the sole entity responsible for: (1) processing applications and renewals for licenses required under section 23 of this chapter; (2) issuing unique identifiers for licensees and entities exempt from licensing under section 23 of this chapter; and (3) performing other services that the director determines are necessary for the orderly administration of the department's licensing system under section 23 of this chapter. (b) Subject to the confidentiality provisions contained in IC 5-14-3, this section, and IC 28-1-2-30, the director may regularly report to the NMLSR significant or recurring violations of this article related to consumer loans that are not mortgage transactions, including small loans under IC 37-3. (c) Subject to the confidentiality provisions contained in IC 5-14-3, this section, and IC 28-1-2-30, the director may report to the NMLSR complaints received regarding licensees under section 23 of this chapter in connection with consumer loans that are not mortgage transactions, including small loans under IC 37-3. (d) The director may report to the NMLSR publicly adjudicated licensure actions against licensees under section 23 of this chapter. (e) The director shall establish a process in which persons licensed in accordance with section 23 of this chapter may challenge information reported to the NMLSR by the department. (f) The director's authority to designate the NMLSR under subsection (a) is subject to the following: (1) Information stored in the NMLSR is subject to the confidentiality provisions of IC 28-1-2-30 and IC 5-14-3. 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 IC 28-1-2-30 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 article. (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, 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 privileged information or material held by the NMLSR, 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 licensed in accordance with section 23 of this chapter and described in section 26(b) 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 an NMLSR processing fee is reasonable, the director shall: (A) require review of; and (B) make available; the audited financial statements of the NMLSR. (g) Notwithstanding any other provision of law, any: (1) application, renewal, or other form or document that: (A) relates to licenses issued under section 23 of this chapter; and (B) is made or produced in an electronic format; (2) 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 (3) electronic record filed through the NMLSR; is considered a valid original document when reproduced in paper form by the department. [Pre-2026 Revision Citation: 24-4.5-3-502.2.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-26 Application for licenses; issuance; evidence of compliance; use of NMLSR; denial of application; right to hearing; fees; license not assignable or transferrable; tax warrant list

Sec. 26. (a) The department shall receive and act on all applications for licenses to make consumer loans. Applications must be as prescribed by the director of the department of financial institutions. If, at any time, the information or record contained in: (1) an application filed under section 23 of this chapter or section 24 of this chapter; or (2) a renewal application filed under section 31 of this chapter; is or becomes inaccurate or incomplete in a material respect, the applicant shall promptly file a correcting amendment with the department. (b) A license shall not be issued unless the department finds that the professional training and experience, financial responsibility, character, and fitness of: (1) the applicant and any significant affiliate of the applicant; (2) each executive officer, director, or manager of the applicant, or any other individual having a similar status or performing a similar function for the applicant; and (3) if known, each person directly or indirectly owning of record or owning beneficially at least ten percent (10%) of the outstanding shares of any class of equity security of the applicant; are such as to warrant belief that the business will be operated honestly and fairly within the purposes of this article. (c) The director is entitled to request evidence of compliance with this section at: (1) the time of application; (2) the time of renewal of a license; or (3) any other time considered necessary by the director. (d) Evidence of compliance with this section concerning a person licensed under section 23 of this chapter may include and for a person licensed under section 24 of this chapter must include: (1) criminal background checks as described in section 27 of this chapter, including a national criminal history background check (as defined in IC 10-13-3-12) by the Federal Bureau of Investigation, for any individual described in subsection (b); (2) credit histories as described in section 28 of this chapter; (3) surety bond requirements as described in section 29 of this chapter; (4) a review of licensure actions in Indiana and other states; and (5) other background checks considered necessary by the director. (e) For purposes of this section and in order to reduce the points of contact that the director may have to maintain under this section, the director may use the NMLSR as a channeling agent for requesting and distributing information to and from any source as directed by the director. (f) The department may deny an application under this section if the director of the department determines that the application was submitted for the benefit of, or on behalf of, a person who does not qualify for a license. (g) Upon written request, the applicant is entitled to a hearing on the question of the qualifications of the applicant for a license as provided in IC 4-21.5. (h) The applicant shall pay the following fees at the time designated by the department: (1) An initial license fee as established by the department under IC 28-11-3-5. (2) Examination fees as established by the department under IC 28-11-3-5. (3) An annual renewal fee as established by the department under IC 28-11-3-5. (i) A fee as established by the department under IC 28-11-3-5 may be charged for each day a fee under subsection (h)(2) or (h)(3) is delinquent. (j) The licensee may deduct the fees required under subsection (h)(1) and (h)(3) from the filing fees paid under IC 37-2-7-26. (k) Except in a transaction approved under section 41 of this chapter, a license issued under this section is not assignable or transferable. (l) If the department of state revenue notifies the department that a person is on the most recent tax warrant list, the department shall not issue or renew the person's license until: (1) the person provides to the department a statement from the department of state revenue that the person's tax warrant has been satisfied; or (2) the department receives a notice from the commissioner of the department of state revenue under IC 6-8.1-8-2(k). [Pre-2026 Revision Citation: 24-4.5-3-503.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-27 National criminal history background check; fingerprints; payment of fees or costs; use of NMLSR

Sec. 27. (a) When the director requests a national criminal history background check under section 26(d)(1) of this chapter for an individual described in section 26(b) of this chapter, the director shall require the individual to submit fingerprints to the department, state police department, or NMLSR, as directed, at the time evidence of compliance is requested under section 26(d) of this chapter. The individual to whom the request is made shall pay any fees or costs associated with processing and evaluating the fingerprints and the national criminal history background check. The national criminal history background check may be used by the director to determine the individual's compliance with this section. The director or the department may not release the results of the national criminal history background check to any private entity. (b) For purposes of this section and in order to reduce the points of contact that the Federal Bureau of Investigation may have to maintain for purposes of this section, the director may use the NMLSR as a channeling agent for requesting information from and distributing information to the United States Department of Justice or any governmental agency. [Pre-2026 Revision Citation: 24-4.5-3-503.1.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-28 Credit reports; payment of fees or costs; demonstrated financial responsibility; considerations

Sec. 28. (a) If the director requests a credit report for an individual described in section 26(b) of this chapter, the individual to whom the request is made shall pay any fees or costs associated with procuring the report. (b) The individual must submit personal history and experience information in a form prescribed by the NMLSR, including the submission of authorization for the NMLSR or the director to obtain an independent credit report obtained from a consumer reporting agency described in Section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)). (c) The director may consider one (1) or more of the following when determining if an individual has demonstrated financial responsibility: (1) Bankruptcies filed within the last ten (10) years. (2) Current outstanding judgments, except judgments solely as a result of medical expenses. (3) Current outstanding tax liens or other government liens or filings. (4) Foreclosures within the past three (3) years. (5) A pattern of serious delinquent accounts within the past three (3) years. [Pre-2026 Revision Citation: 24-4.5-3-503.2.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-29 Surety bond for creditors engaged in mortgage transactions; requirements; amount; termination; liability; notices

Sec. 29. (a) Each: (1) creditor licensed by the department to engage in mortgage transactions; and (2) person that is exempt (either under this article or under IC 37-1-1-6(8)) from licensing and that: (A) employs a licensed mortgage loan originator; or (B) sponsors a licensed mortgage loan originator as permitted by IC 37-1-1-6(8) or by 750 IAC 9; must be covered by a surety bond in accordance with this section. (b) A surety bond must: (1) provide coverage for: (A) a creditor described in subsection (a)(1); and (B) an exempt person described in subsection (a)(2); in an amount as prescribed in subsection (d); (2) be in a form as prescribed by the director; (3) be in effect: (A) during the term of the creditor's license; or (B) at any time during which the person exempt from licensing employs a licensed mortgage loan originator, or sponsors a licensed mortgage loan originator as permitted by IC 37-1-1-6(8) or by 750 IAC 9; as applicable; (4) subject to subsection (c), remain in effect during the two (2) years after: (A) the license of the creditor is surrendered or terminated; or (B) the person exempt from licensing ceases to employ a licensed mortgage loan originator, or ceases to sponsor a licensed mortgage loan originator as permitted by IC 37-1-1-6(8) or by 750 IAC 9, or to offer financial services to individuals in Indiana, whichever is later; as applicable; (5) be payable to the department for the benefit of: (A) the state; and (B) individuals who reside in Indiana when they agree to receive financial services from the creditor or the person exempt from licensing, as applicable; (6) be issued by a bonding, surety, or insurance company authorized to do business in Indiana and rated at least "A-" by at least one (1) nationally recognized investment rating service; and (7) have payment conditioned upon: (A) the creditor's or any of the creditor's licensed mortgage loan originators'; or (B) the exempt person's or any of the exempt person's licensed mortgage loan originators'; noncompliance with or violation of this chapter, 750 IAC 9, or other federal or state laws or regulations applicable to mortgage lending. (c) The director may adopt rules or guidance documents with respect to the requirements for surety bonds as necessary to accomplish the purposes of this article. Upon written request from: (1) a creditor described in subsection (a)(1); or (2) an exempt person described in subsection (a)(2); the director may, at the discretion of the director, waive or shorten the two (2) year period set forth in subsection (b)(4) during which a surety bond required by this section must remain in effect after the occurrence of an event described in subsection (b)(4)(A) or (b)(4)(B), as applicable. (d) The penal sum of the surety bond shall be maintained in an amount that reflects the dollar amount of mortgage transactions originated as determined by the director. If the principal amount of a surety bond required under this section is reduced by payment of a claim or judgment, the creditor or exempt person for whom the bond is issued shall immediately notify the director of the reduction and, not later than thirty (30) days after notice by the director, file a new or an additional surety bond in an amount set by the director. The amount of the new or additional bond set by the director must be at least the amount of the bond before payment of the claim or judgment. (e) If for any reason a surety terminates a bond issued under this section, the creditor or the exempt person shall immediately notify the department and file a new surety bond in an amount determined by the director. (f) Cancellation of a surety bond issued under this section does not affect any liability incurred or accrued during the period when the surety bond was in effect. (g) The director may obtain satisfaction from a surety bond issued under this section if the director incurs expenses, issues a final order, or recovers a final judgment under this chapter. (h) Notices required under this section must be made in writing and submitted through the NMLSR or any other electronic registration system that may be approved by the director. [Pre-2026 Revision Citation: 24-4.5-3-503.3.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-30 Use of NMLSR in department's licensing system for subordinate lien mortgage transactions; reporting of information to NMLSR; confidentiality; director's authority to enter agreements; waiver of privilege processing fee; electronic records

Sec. 30. (a) Subject to subsection (g), the director shall designate the NMLSR to serve as the sole entity responsible for: (1) processing applications and renewals for licenses under section 24 of this chapter; (2) issuing unique identifiers for licensees under section 24 of this chapter and for persons exempt from licensing (either under this article or under IC 37-1-1-6(8)) that employ licensed mortgage loan originators or that sponsor licensed mortgage loan originators as permitted by IC 37-1-1-6(8) or by 750 IAC 9; and (3) performing other services that the director determines necessary for the orderly administration of the department's licensing system under section 24 of this chapter. (b) Subject to the confidentiality provisions contained in IC 5-14-3, this section, and IC 28-1-2-30, the director may regularly report significant or recurring violations of this article related to subordinate lien mortgage transactions to the NMLSR. (c) Subject to the confidentiality provisions contained in IC 5-14-3, this section, and IC 28-1-2-30, the director may report complaints received regarding licensees and relating to subordinate lien mortgage transactions to the NMLSR. (d) The director may report publicly adjudicated licensure actions against licensees under section 24 of this chapter to the NMLSR. (e) The director shall establish a process in which persons licensed in accordance with section 24 of this chapter may challenge information reported to the NMLSR by the department. (f) The director's authority to designate the NMLSR under subsection (a) is subject to the following: (1) Information stored in the NMLSR is subject to the confidentiality provisions of IC 28-1-2-30 and IC 5-14-3. 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 IC 28-1-2-30 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 article. (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) Except as otherwise provided in the federal Housing and Economic Recovery Act of 2008, Public Law 110-289, Section 1512, 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 mortgage 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 American Association of Residential Mortgage Regulators, 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 licensed in accordance with section 24 of this chapter and described in section 26(b) 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 an NMLSR processing fee is reasonable, the director shall: (A) require review of; and (B) make available; the audited financial statements of the NMLSR. (g) Notwithstanding any other provision of law, any: (1) application, renewal, or other form or document that: (A) relates to mortgage licenses issued by the department; and (B) is made or produced in an electronic format; (2) document filed as an electronic record in a multistate automated repository established and operated for the licensing or registration of mortgage lenders, brokers, or loan originators; or (3) electronic record filed through the NMLSR; is considered a valid original document when reproduced in paper form by the department. [Pre-2026 Revision Citation: 24-4.5-3-503.4.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-31 License renewal; revocation or suspension of license not renewed; reinstatement of appeal; correcting amendments

Sec. 31. (a) A license issued under this article must be renewed not later than December 31 of each calendar year. A license issued under section 24 of this chapter must be renewed through the NMLSR. The minimum standards for license renewal for a creditor include the following: (1) If the creditor is licensed in accordance with section 23 of this chapter, the creditor has: (A) paid all required fees for renewal of the license; and (B) filed all reports and information required by the director. (2) If the creditor is licensed under section 24 of this chapter, the following: (A) The creditor has continued to meet the surety bond requirement under section 29 of this chapter. (B) The creditor has filed the creditor's call report in a manner that satisfies section 33(d) of this chapter. (C) The creditor has paid all required fees for renewal of the license. (D) The creditor and individuals described in section 26(b) of this chapter have certified to the department that they continue to meet all the standards for licensing established under section 26 of this chapter. (E) The creditor has filed all reports and information required by the director. (F) The creditor has provided in the creditor's renewal application any information describing material changes in the information contained in the creditor's original application for licensure, or in any previous application, including any previous renewal application, along with any other information the director requires in order to evaluate the renewal of the license issued under this article. (b) A license issued by the department authorizing a person to engage as a creditor in consumer loans or consumer credit sales under this article may be revoked or suspended by the department if the person fails to: (1) file any renewal form required by the department; or (2) pay any license renewal fee described under section 26(h)(3) of this chapter; not later than sixty (60) days after the due date. (c) A person whose license is revoked or suspended under this section may do either of the following: (1) Pay all delinquent fees and apply for reinstatement of the license. (2) Appeal the revocation or suspension to the department for an administrative review under IC 4-21.5-3. Pending the decision from a hearing under IC 4-21.5-3 concerning license revocation or suspension, a license remains in force. (d) If, at any time, the information or record contained in: (1) an original application for licensure filed under section 23 or 24 of this chapter; or (2) a renewal application filed under this section; is or becomes inaccurate or incomplete in a material respect, the applicant shall promptly file a correcting amendment with the department. [Pre-2026 Revision Citation: 24-4.5-3-503.6.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-32 Suspension or revocation of license; order to show cause; order of suspension or revocation; relinquishment of license; preexisting contracts; emergency order for revocation

Sec. 32. (a) The department may issue to a person licensed to: (1) make consumer loans; or (2) engage in consumer credit sales that are mortgage transactions; an order to show cause why the license should not be revoked or suspended for a period determined by the department. (b) An order issued under subsection (a) must: (1) include: (A) a statement of the place, date, and time for a meeting with the department, which date may not be less than ten (10) days from the date of the order; (B) a description of the action contemplated by the department; and (C) a statement of the facts or conduct supporting the issuance of the order; and (2) be accompanied by a notice stating that the licensee is entitled to: (A) a reasonable opportunity to be heard; and (B) show the licensee's compliance with all lawful requirements for retention of the license; at the meeting described in subdivision (1)(A). (c) After the meeting described in subsection (b)(1)(A), the department may revoke or suspend the license if the department finds that: (1) the licensee has repeatedly and willfully violated: (A) this article or any applicable rule, order, or guidance document adopted or issued by the department; or (B) any other state or federal laws, rules, or regulations applicable to consumer credit transactions; (2) the licensee does not meet the licensing qualifications under section 26 of this chapter; (3) the licensee obtained the license for the benefit of, or on behalf of, a person who does not qualify for the license; (4) the licensee knowingly or intentionally made material misrepresentations to, or concealed material information from, the department; or (5) facts or conditions exist that, had they existed at the time the licensee applied for the license, would have been grounds for the department to deny the issuance of the license. (d) Whenever the department revokes or suspends a license, the department shall enter an order to that effect and forthwith notify the licensee of: (1) the revocation or suspension; (2) if a suspension has been ordered, the duration of the suspension; (3) the procedure for appealing the revocation or suspension under IC 4-21.5-3-6; and (4) any other terms and conditions that apply to the revocation or suspension. Not later than five (5) days after the entry of the order the department shall deliver to the licensee a copy of the order and the findings supporting the order. (e) Any person holding a license to make consumer loans may relinquish the license by notifying the department in writing of its relinquishment, but this relinquishment does not affect the person's liability for acts previously committed and coming within the scope of this article. (f) If the director determines it is in the public interest, the director may pursue revocation of a license of a licensee that has relinquished the license under subsection (e). (g) If a person's license is revoked, suspended, or relinquished, the revocation, suspension, or relinquishment does not impair or affect any obligation owed by any person under any preexisting lawful contract. (h) If the director has just cause to believe an emergency exists from which it is necessary to protect the interests of the public, the director may proceed with the revocation of a license through an emergency or another temporary order under IC 4-21.5-4. [Pre-2026 Revision Citation: 24-4.5-3-504.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-33 Record keeping; use of unique identifier on forms and documents; use of examination and regulatory software; submitting call reports to NMLSR; composite reports; notice to department of certain events or changes

Sec. 33. (a) Every creditor required to be licensed under this article shall maintain records in conformity with United States generally accepted accounting principles and practices, or in any other form that may be preapproved at the discretion of the director, in a manner that will enable the department to determine whether the licensee is complying with the provisions of this article. The record keeping system of a licensee shall be sufficient if the licensee makes the required information reasonably available. The department shall determine the sufficiency of the records and whether the licensee has made the required information reasonably available. The department shall be given free access to the records wherever located. The records pertaining to any loan shall be retained for two (2) years after making the final entry relating to the loan, but in the case of a revolving loan account the two (2) years is measured from the date of each entry. A person licensed or required to be licensed under this chapter is subject to IC 28-1-2-30.5 with respect to any records maintained by the person. A person that is exempt (either under this article or under IC 37-1-1-6(8)) from licensing and that sponsors one (1) or more licensed mortgage loan originators as permitted by IC 37-1-1-6(8) or by 750 IAC 9, shall: (1) cooperate with the department; and (2) provide access to records and documents; as required by the department in carrying out examinations of the activities of the licensed mortgage loan originators sponsored by the person. (b) The unique identifier of any person originating a mortgage transaction must be clearly shown on all mortgage transaction application forms and any other documents as required by the director. (c) Every licensee that engages in mortgage transactions shall use automated examination and regulatory software designated by the director, including third party software. Use of the software consistent with guidance documents and policies issued by the director is not a violation of IC 28-1-2-30. (d) Each: (1) creditor that is licensed by the department to engage in mortgage transactions; and (2) person that is exempt (either under this article or under IC 37-1-1-6(8)) from licensing and that: (A) employs one (1) or more licensed mortgage loan originators; or (B) sponsors one (1) or more licensed mortgage loan originators as permitted by IC 37-1-1-6(8) or by 750 IAC 9; shall submit to the NMLSR a call report, which must be in the form and contain information the NMLSR requires. (e) Every creditor required to be licensed under this article shall file with the department a composite report as required by the department, but not more frequently than annually, in the form prescribed by the department relating to all consumer loans made by the licensee. The department shall consult with comparable officials in other states for the purpose of making the kinds of information required in the reports uniform among the states. Information contained in the reports shall be confidential and may be published only in composite form. The department may impose a fee in an amount fixed by the department under IC 28-11-3-5 for each day that a creditor fails to file the report required by this subsection. (f) A creditor required to be licensed under this article shall file notification with the department if the licensee: (1) has a change in name, address, or principals; (2) opens a new branch, closes an existing branch, or relocates an existing branch; (3) files for bankruptcy or reorganization; or (4) is subject to revocation or suspension proceedings by a state or governmental authority with regard to the licensee's activities; not later than thirty (30) days after the date of the event described in this subsection. (g) Every licensee shall file notification with the department if the licensee or any director, executive officer, or manager of the licensee has been convicted of a felony under the laws of Indiana or any other jurisdiction. The licensee shall file the notification required by this subsection not later than thirty (30) days after the date of the event described in this subsection. [Pre-2026 Revision Citation: 24-4.5-3-505.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-34 Automated loan machines

Sec. 34. (a) As used in this section, "automated loan machine" means an unmanned machine that performs routine lending functions. (b) A licensee may make loans through an automated loan machine at an offsite location if the licensee: (1) notifies the department in writing of the existence and location of the automated loan machine; (2) maintains at a location licensed or approved by the department the books, accounts, records, and files concerning transactions performed through the automated loan machine; and (3) posts at the offsite location where the automated loan machine is located the: (A) address where the books, accounts, records and files are located; and (B) telephone number at which the licensee may be contacted. [Pre-2026 Revision Citation: 24-4.5-3-505.5.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-35 Loan finance charge for supervised loans; precomputed supervised loans prohibited after June 30, 2020; nonrefundable prepaid finance charge; loan paid in full by new loan from same lender

Sec. 35. (a) With respect to a supervised loan, including a loan pursuant to a revolving loan account, a supervised lender may contract for and receive a loan finance charge not exceeding that permitted by this section. (b) The loan finance charge, calculated according to the actuarial method, may not exceed the equivalent of the greater of: (1) the total of: (A) thirty-six percent (36%) per year on that part of the unpaid balances of the principal which is two thousand dollars ($2,000) or less; (B) twenty-one percent (21%) per year on that part of the unpaid balances of the principal which is more than two thousand dollars ($2,000) but does not exceed four thousand dollars ($4,000); and (C) fifteen percent (15%) per year on that part of the unpaid balances of the principal which is more than four thousand dollars ($4,000); or (2) twenty-five percent (25%) per year on the unpaid balances of the principal. (c) In the case of a loan agreement entered into before July 1, 2020, this section does not limit or restrict the manner of contracting for the loan finance charge, whether by way of add-on, discount, or otherwise, so long as the rate of the loan finance charge does not exceed that permitted by this section. If the loan is precomputed: (1) the loan finance charge may be calculated on the assumption that all scheduled payments will be made when due; and (2) the effect of prepayment is governed by the provisions on rebate upon prepayment in section 13 of this chapter. After June 30, 2020, a loan agreement may not be entered into for a precomputed supervised loan. The loan finance charge authorized by this section must be contracted for between the lender and the debtor, and must be calculated by applying a rate not exceeding the rate set forth in subsection (b) to unpaid balances of the principal. (d) The term of a loan for the purposes of this section commences on the date the loan is made. Differences in the lengths of months are disregarded, and a day may be counted as one-thirtieth (1/30) of a month. Subject to classifications and differentiations the lender may reasonably establish, a part of a month in excess of fifteen (15) days may be treated as a full month if periods of fifteen (15) days or less are disregarded and that procedure is not consistently used to obtain a greater yield than would otherwise be permitted. (e) Subject to classifications and differentiations the lender may reasonably establish, the lender may make the same loan finance charge on all principal amounts within a specified range. A loan finance charge does not violate subsection (b) if: (1) when applied to the median amount within each range, it does not exceed the maximum permitted in subsection (b); and (2) when applied to the lowest amount within each range, it does not produce a rate of loan finance charge exceeding the rate calculated according to subdivision (1) by more than eight percent (8%) of the rate calculated according to subdivision (1). (f) The amounts of two thousand dollars ($2,000) and four thousand dollars ($4,000) in subsection (b) and thirty dollars ($30) in subsection (g) are subject to change pursuant to the provisions on adjustment of dollar amounts set forth in IC 37-2-1-5. However, notwithstanding IC 37-2-1-5(a), for the adjustment of the amount of thirty dollars ($30), the Reference Base Index to be used is the Index for October 1992. Notwithstanding IC 37-2-1-5(a), for the adjustment of the amounts of two thousand dollars ($2,000) and four thousand dollars ($4,000), the Reference Base Index to be used is the Index for October 2012. (g) With respect to a supervised loan not made pursuant to a revolving loan account, the lender may contract for and receive a minimum loan finance charge of not more than thirty dollars ($30). The minimum loan finance charge allowed under this subsection may be imposed only if the lender does not assess a nonrefundable prepaid finance charge under subsection (h) and: (1) the debtor prepays in full a consumer loan, refinancing, or consolidation, regardless of whether the loan, refinancing, or consolidation is precomputed; (2) the loan, refinancing, or consolidation prepaid by the debtor is subject to a loan finance charge that: (A) is contracted for by the parties; and (B) does not exceed the rate prescribed in subsection (b); and (3) the loan finance charge earned at the time of prepayment is less than the minimum loan finance charge contracted for under this subsection. (h) Except as provided in subsections (g) and (j)(3), in addition to the loan finance charge provided for in this section and to any other charges and fees permitted by this chapter, the lender may contract for and receive a nonrefundable prepaid finance charge of not more than fifty dollars ($50) if the loan agreement is entered into before July 1, 2020. If the loan agreement is entered into after June 30, 2020, not more than the following: (1) Seventy-five dollars ($75), in the case of a loan agreement for a principal amount which is two thousand dollars ($2,000) or less. (2) One hundred fifty dollars ($150) in the case of a loan agreement for a principal amount which is more than two thousand dollars ($2,000) but does not exceed four thousand dollars ($4,000). (3) Two hundred dollars ($200) in the case of a loan agreement for a principal amount which is more than four thousand dollars ($4,000). The amounts in this subsection are not subject to change under IC 37-2-1-5. (i) The nonrefundable prepaid finance charge provided for in subsection (h) is not subject to refund or rebate. However, for any supervised loan entered into after June 30, 2020, any amount charged by the lender, other than by a lender that is a depository institution, under subsection (h) that exceeds the applicable amount permitted by subsection (h) constitutes a violation of this article under IC 37-2-7-8(12) and is subject to refund. Any amount charged by a depository institution under subsection (h) that exceeds the applicable amount set forth in subsection (h) is subject to refund. (j) Notwithstanding subsections (h) and (i), in the case of a supervised loan that is not secured by an interest in land, if a lender retains any part of a nonrefundable prepaid finance charge charged on a loan that is paid in full by a new loan from the same lender, the following apply: (1) If the loan is paid in full by the new loan within three (3) months after the date of the prior loan, the lender may not charge a nonrefundable prepaid finance charge on the new loan, or, in the case of a revolving loan, on the increased credit line. (2) The lender may not assess more than two (2) nonrefundable prepaid finance charges in any twelve (12) month period. (3) Subject to subdivisions (a) and (b), if a supervised loan that is entered into by a lender and a debtor before July 1, 2020, is paid in full by a new loan from the same lender after June 30, 2020, the lender may contract for and receive a nonrefundable prepaid finance charge in the amount set forth in subsection (h) for loan agreements entered into after June 30, 2020. (k) In the case of a supervised loan that is secured by an interest in land, this section does not prohibit a lender from contracting for and receiving a fee for preparing deeds, mortgages, reconveyances, and similar documents under section 5(a)(4)(B) of this chapter, in addition to the nonrefundable prepaid finance charge provided for in subsection (h). [Pre-2026 Revision Citation: 24-4.5-3-508.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-36 Use of multiple agreements

Sec. 36. With respect to a consumer loan, no lender may permit any person, or husband and wife, to become obligated in any way under more than one loan agreement with the lender or with a person related to the lender, with intent to obtain a higher rate of loan finance charge than would otherwise be permitted by the provisions on loan finance charge for supervised loans set forth in section 35 of this chapter or to avoid disclosure of an annual percentage rate pursuant to the provisions on disclosure set forth in section 14 of this chapter. The excess amount of loan finance charge provided for in agreements in violation of this section is an excess charge for the purposes of the provisions on effect of violations on rights of parties (IC 37-2-6-9) and the provisions on civil actions by the department (IC 37-2-7-14). [Pre-2026 Revision Citation: 24-4.5-3-509.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-37 Restrictions on interest in land as security

Sec. 37. (a) With respect to a supervised loan in which the principal is four thousand dollars ($4,000) or less, a lender may not contract for an interest in land as security. A security interest taken in violation of this section is void. (b) The amount of four thousand dollars ($4,000) in subsection (a) is subject to change pursuant to the provisions on adjustment of dollar amounts set forth in IC 37-2-1-5. However, notwithstanding IC 37-2-1-5(a), the Reference Base Index to be used under this subsection is the Index for October 2012. [Pre-2026 Revision Citation: 24-4.5-3-510.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-38 Regular schedule of payments; maximum loan term

Sec. 38. (a) Supervised loans not made pursuant to a revolving loan account and in which the principal is four thousand dollars ($4,000) or less are payable in a single installment or shall be scheduled to be payable in substantially equal installments that are payable at equal periodic intervals, except to the extent that the schedule of payments is adjusted to the seasonal or irregular income of the debtor, and: (1) over a period of not more than thirty-seven (37) months if the principal is more than three hundred dollars ($300); or (2) over a period of not more than twenty-five (25) months if the principal is three hundred dollars ($300) or less. (b) The amounts of three hundred dollars ($300) and four thousand dollars ($4,000) in subsection (a) are subject to change pursuant to the provisions on adjustment of dollar amounts set forth in IC 37-2-1-5. However, notwithstanding IC 37-2-1-5(a), the Reference Base Index to be used with respect to the amount of: (1) three hundred dollars ($300) is the Index for October 1992; and (2) four thousand dollars ($4,000) is the Index for October 2012. [Pre-2026 Revision Citation: 24-4.5-3-511.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-39 Carrying on other business

Sec. 39. A licensee may carry on other business at a location where the licensee makes consumer loans unless the licensee carries on other business for the purpose of evasion or violation of this article. [Pre-2026 Revision Citation: 24-4.5-3-512.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-40 Change in control of creditor; application to department; timeframe for department's decision; conditions for approval; creditor's duty to report transfer of securities; director's discretion to require new license

Sec. 40. (a) As used in this section, "control" means possession of the power directly or indirectly to: (1) direct or cause the direction of the management or policies of a creditor, whether through the beneficial ownership of voting securities, by contract, or otherwise; or (2) vote at least twenty-five percent (25%) of the voting securities of a creditor, whether the voting rights are derived through the beneficial ownership of voting securities, by contract, or otherwise. (b) An organization or an individual acting directly, indirectly, or through or in concert with one (1) or more other organizations or individuals may not acquire control of any creditor unless the department has received and approved an application for change in control. The department has not more than one hundred twenty (120) days after receipt of an application to issue a notice approving the proposed change in control. The application must contain the name and address of the organization, individual, or individuals who propose to acquire control and any other information required by the director. (c) The period for approval under subsection (b) may be extended: (1) in the discretion of the director for an additional thirty (30) days; and (2) not more than two (2) additional times for not more than forty-five (45) days each time if: (A) the director determines that the organization, individual, or individuals who propose to acquire control have not submitted substantial evidence of the qualifications described in subsection (d); (B) the director determines that any material information submitted is substantially inaccurate; or (C) the director has been unable to complete the investigation of the organization, individual, or individuals who propose to acquire control because of any delay caused by or the inadequate cooperation of the organization, individual, or individuals. (d) The department shall issue a notice approving the application only after the department is satisfied that both of the following apply: (1) The organization, individual, or individuals who propose to acquire control are qualified by competence, experience, character, and financial responsibility to control and operate the creditor in a legal and proper manner. (2) The interests of the owners and creditors of the creditor and the interests of the public generally will not be jeopardized by the proposed change in control. (e) The director may determine, in the director's discretion, that subsection (b) does not apply to a transaction if the director determines that the direct or beneficial ownership of the creditor will not change as a result of the transaction. (f) The president or other chief executive officer of a creditor shall report to the director any transfer or sale of securities of the creditor that results in direct or indirect ownership by a holder or an affiliated group of holders of at least ten percent (10%) of the outstanding securities of the creditor. The report required by this subsection must be made not later than ten (10) days after the transfer of the securities on the books of the creditor. (g) Depending on the circumstances of the transaction, the director may reserve the right to require the organization, individual, or individuals who propose to acquire control of a creditor licensed under this article to apply for a new license under section 26 of this chapter, instead of acquiring control of the licensee under this section. [Pre-2026 Revision Citation: 24-4.5-3-515.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-41 Loans subject to article by agreement of parties

Sec. 41. The parties to a loan other than a consumer loan may agree in writing signed by the parties that the loan is subject to the provisions of this article applying to consumer loans. If the parties so agree, the loan is a consumer loan for the purposes of this article. [Pre-2026 Revision Citation: 24-4.5-3-601.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-42 Loan finance charge; licensing and annual notice to department not required

Sec. 42. (a) With respect to a consumer related loan, including one made pursuant to a revolving loan account, the parties may contract for the payment by the debtor of a loan finance charge, calculated according to the actuarial method, not to exceed twenty-five percent (25%) per year on the unpaid principal balance. (b) A person engaged in consumer related loans is not required to comply with: (1) the licensing requirements set forth in section 26 of this chapter; or (2) IC 37-2-7-24 through IC 37-2-7-26. [Pre-2026 Revision Citations: 24-4.5-3-602(2); 24-4.5-3-602(3).] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-43 Limitation on default charges in consumer related loans

Sec. 43. (a) The agreement with respect to a consumer related loan may provide for only the following charges as a result of the debtor's default: (1) reasonable attorney's fees and reasonable expenses incurred in realizing on a security interest; (2) deferral charges not in excess of twenty-five percent (25%) per year of the amount deferred for the period of deferral; and (3) other charges that could have been made had the loan been a consumer loan. (b) A provision in violation of this section is unenforceable. [Pre-2026 Revision Citation: 24-4.5-3-604.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-44 Loan finance charge for other loans

Sec. 44. With respect to a loan other than a consumer loan or a consumer related loan, the parties may contract for the payment by the debtor of any loan finance charge. [Pre-2026 Revision Citation: 24-4.5-3-605.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-45 Required disclosures; liability on fraudulently cashed instruments

Sec. 45. (a) In addition to any disclosures otherwise provided by law, a lender soliciting loans using a negotiable check, facsimile, or other negotiable instrument that may be used by a consumer to activate a new loan shall disclose the following: "This is a solicitation for a loan. Read the enclosed disclosures before signing this agreement.". This notice shall be printed in at least ten point type and shall appear conspicuously on the offer. (b) If a negotiable check, a facsimile, or another instrument is stolen or incorrectly received by someone other than the intended payee and the instrument is fraudulently cashed, the consumer who was the intended payee is not liable for the loan obligation. [Pre-2026 Revision Citation: 24-4.5-3-606.] As added by P.L.115-2026, SEC.97.

Ind. Code § 37-2-4-46 Requirement to provide property tax information in certain transactions

Sec. 46. With respect to a consumer loan secured by an interest in land used or expected to be used as the principal dwelling of the debtor, a lender shall comply with IC 6-1.1-12-43. [Pre-2026 Revision Citation: 24-4.5-3-701.] 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