§ 24-4.5-1-201 — Territorial application; determination of residence; invalid agreements; violations; voiding of loan

(1) Except as otherwise provided in this
section, this article applies to sales, leases, and loans made in this state
and to modifications, including refinancings, consolidations, and
deferrals, made in this state, of sales, leases, and loans, wherever made.
For purposes of this article, the following apply:
(a) A sale or modification of a sale agreement is made in this state
if the buyer's agreement or offer to purchase or to modify is
received by the seller or a person acting on behalf of the seller in
this state.
(b) A lease or modification of a lease agreement is made in this
state if the lessee's agreement or offer to lease or to modify is
received by the lessor or a person acting on behalf of the lessor in
this state.
(c) A loan or modification of a loan agreement is made in this
state if a writing signed by the debtor and evidencing the debt is
received by the lender or a person acting on behalf of the lender
in this state.
(d) Except as provided in subdivisions (e) and (f), a sale, lease, or
loan transaction occurs in Indiana if a consumer who is a resident
of Indiana enters into a consumer sale, lease, or loan transaction
with a creditor or a person acting on behalf of the creditor in
another state and the creditor or the person acting on behalf of the
creditor has advertised or solicited sales, leases, or loans in
Indiana by any means, including by mail, brochure, telephone,
print, radio, television, the Internet, or electronic means.
(e) A sale, lease, or loan transaction does not occur in Indiana if
a consumer who is a resident of Indiana enters into a consumer
sale, lease, or loan transaction secured by an interest in land
located outside Indiana.
(f) A sale, lease, or loan transaction does not occur in Indiana if
a consumer who is a resident of Indiana enters into a consumer
sale, lease, or loan transaction at a creditor's place of business in
another state.
For purposes of subdivisions (a) through (c), an offer is received by a
creditor or a person acting on behalf of the creditor in Indiana if the
offer is physically delivered, or otherwise transmitted or
communicated, to a person who has actual or apparent authority to act
for the creditor or the person acting on behalf of the creditor in Indiana,
regardless of whether approval, acceptance, or ratification by any other
agent or representative of the creditor or the person acting on behalf of
the creditor in another state is necessary to give legal consequence to
the consumer credit transaction.
(2) IC 24-4.5-5-101 through IC 24-4.5-5-108 apply to actions or
other proceedings brought in this state to enforce rights arising from
consumer credit sales, consumer leases, or consumer loans, or
extortionate extensions of credit, wherever made.
(3) Except as provided in subsection (2), a sale, lease, loan, or
modification thereof, made in another state to a person who was not a
resident of this state when the sale, lease, loan, or modification was
made is valid and enforceable in this state according to its terms to the
extent that it is valid and enforceable under the laws of the state
applicable to the transaction.
(4) For the purposes of this article, the residence of a buyer, lessee,
or debtor is the address given by the buyer, lessee, or debtor as the
buyer's, lessee's, or debtor's residence in any writing or electronic
communication made by the buyer, lessee, or debtor in connection with
a credit transaction. Until the buyer, lessee, or debtor notifies the
creditor or the person acting on behalf of the creditor of a new or
different address, the given address is presumed to be unchanged.
(5) Notwithstanding other provisions of this section:
(a) except as provided in subsection (2), this article does not apply
if the buyer, lessee, or debtor is not a resident of this state at the
time of a credit transaction and the parties then agree that the law
of the buyer's, lessee's, or debtor's residence applies; and
(b) this article applies if the buyer, lessee, or debtor is a resident
of this state at the time of a credit transaction and the parties then
agree that the law of this state applies.
(6) Except as provided in subsection (5), the following agreements
by a buyer, lessee, or debtor are invalid with respect to consumer credit
sales, consumer leases, consumer loans, or modifications thereof, to
which this article applies:
(a) An agreement that the law of another state shall apply.
(b) An agreement that the buyer, lessee, or debtor consents to the
jurisdiction of another state.
(c) An agreement that fixes venue.
(7) The following provisions of this article specify the applicable
law governing certain cases:
(a) IC 24-4.5-6-102 (applicability of the provisions on powers and
functions of the department).
(b) IC 24-4.5-6-201 (applicability of the provisions on notification
and fees).
(8) If a creditor or a person acting on behalf of the creditor has
violated the provisions of this article that apply to the authority to make
consumer loans (IC 24-4.5-3-502), the loan is void and the debtor is not
obligated to pay either the principal or loan finance charge, as set forth
in IC 24-4.5-5-202.
Formerly: Acts 1971, P.L.366, SEC.2. As amended by Acts
1979, P.L.236, SEC.1; P.L.152-1986, SEC.59; P.L.252-1987, SEC.5;
P.L.14-1992, SEC.6; P.L.122-1994, SEC.4; P.L.10-2006, SEC.2 and
P.L.57-2006, SEC.2; P.L.213-2007, SEC.6; P.L.217-2007, SEC.5;
P.L.90-2008, SEC.5; P.L.216-2013, SEC.6.