Sec. 9. (a) As used in this chapter, “security deposit” means a deposit paid by a tenant to the landlord or the landlord’s agent to be held for all or a part of the term of the rental agreement to secure performance of any obligation of the tenant under the rental agreement.

     (b) The term includes:

(1) a required prepayment of rent other than the first full rental payment period of the lease agreement;

(2) a sum required to be paid as rent in any rental period in excess of the average rent for the term; and

(3) any other amount of money or property returnable to the tenant on condition of return of the rental unit by the tenant in a condition as required by the rental agreement.

Terms Used In Indiana Code 32-31-3-9

  • cooperative housing association: means a consumer cooperative that provides dwelling units to its members. See Indiana Code 32-31-3-2
  • landlord: means :

    Indiana Code 32-31-3-3

  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • rent: includes all payments made to a landlord under a rental agreement except a security deposit, however denominated. See Indiana Code 32-31-3-6
  • rental agreement: means an agreement together with any modifications, embodying the terms and conditions concerning the use and occupancy of a rental unit. See Indiana Code 32-31-3-7
  • rental unit: means :

    Indiana Code 32-31-3-8

  • tenant: means an individual who occupies a rental unit:

    Indiana Code 32-31-3-10

     (c) The term does not include the following:

(1) An amount paid for an option to purchase under a lease with option to purchase, unless it is shown that the intent was to evade this chapter.

(2) An amount paid as a subscription for or purchase of a membership in a cooperative housing association incorporated under Indiana law.

[Pre-2002 Recodification Citation: 32-7-5-9.]

As added by P.L.2-2002, SEC.16.