Indiana Code 24-9-2-3. “Bona fide discount points”
Current as of: 2023 | Check for updates
|
Other versions
Sec. 3. “Bona fide discount points” means loan discount points that:
(2) are paid for the express purpose of reducing the interest rate applicable to the loan;
(1) are knowingly paid by the borrower;
Terms Used In Indiana Code 24-9-2-3
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
(3) reduce the interest rate from an interest rate that does not exceed the benchmark rate; and
(4) are recouped within the first four (4) years of the scheduled loan payments;
if the reduction in the interest rate that is achieved by the payment of the loan discount points reduces the interest charged on the scheduled payments so that the borrower’s dollar amount of savings in interest during the first four (4) years of the loan is equal to or greater than the dollar amount of loan discount points paid by the borrower.
As added by P.L.73-2004, SEC.33.