Indiana Code 24-4.5-3-602. “Consumer related loan”; loan finance charge; licensing and annual notice to department not required
(a) The loan is made by a person who is not regularly engaged as a lender in credit transactions of the same kind.
Terms Used In Indiana Code 24-4.5-3-602
- Contract: A legal written agreement that becomes binding when signed.
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(c) The debt is primarily for a personal, family, or household purpose.
(d) Either the debt is payable in installments or a loan finance charge is made.
(e) Either:
(i) the amount of credit extended, the written credit limit, or the initial advance does not exceed the exempt threshold amount, as adjusted in accordance with the annual adjustment of the exempt threshold amount, specified in Regulation Z (12 C.F.R. § 226.3 or 12 C.F.R. § 1026.3(b), as applicable); or
(ii) the debt is secured by an interest in land or by personal property used or expected to be used as the principal dwelling of the debtor.
(2) 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.
(3) A person engaged in consumer related loans is not required to comply with:
(a) the licensing requirements set forth in section 503 of this chapter; or
(b) IC 24-4.5-6-201 through IC 24-4.5-6-203.
Formerly: Acts 1971, P.L.366, SEC.4. As amended by Acts 1981, P.L.219, SEC.6; Acts 1982, P.L.149, SEC.6; Acts 1982, P.L.150, SEC.6; P.L.14-1992, SEC.40; P.L.122-1994, SEC.28; P.L.27-2012, SEC.24; P.L.216-2013, SEC.11; P.L.137-2014, SEC.13; P.L.73-2016, SEC.12; P.L.69-2018, SEC.23.