§ 24-4.5-1-202 — Exempt transactions and persons

(a) As used in this section, "balloon
payment", with respect to a mortgage transaction, means any payment
that:
(1) the creditor requires the debtor to make at any time during the
term of the mortgage;
(2) represents the entire amount of the outstanding balance with
respect to the mortgage; and
(3) the entire amount of which is due as of a specified date or at
the end of a specified period;
if the aggregate amount of the minimum periodic payments required
under the mortgage would not fully amortize the outstanding balance
by the specified date or at the end of the specified period. The term
does not include a payment required by a creditor under a due-on-sale
clause (as defined in 12 U.S.C. 1701j-3(a)) or a payment required by
a creditor under a provision in the mortgage that permits the creditor
to accelerate the debt upon the debtor's default or failure to abide by the
material terms of the mortgage.
(b) This article does not apply to the following:
(1) Extensions of credit to or by a government or governmental
agencies or instrumentalities.
(2) The sale of insurance by an insurer, except as otherwise
provided in the chapter on insurance (IC 24-4.5-4).
(3) Transactions under public utility, municipal utility, or
common carrier tariffs if a subdivision or agency of this state or
of the United States regulates the charges for the services
involved, the charges for delayed payment, and any discount
allowed for early payment.
(4) The rates and charges and the disclosure of rates and charges
of a licensed pawnbroker established in accordance with a statute
or ordinance concerning these matters.
(5) A sale of goods, services, or an interest in land in which the
goods, services, or interest in land are purchased primarily for a
purpose other than a personal, family, or household purpose.
(6) A loan in which the debt is incurred primarily for a purpose
other than a personal, family, or household purpose.
(7) An extension of credit primarily for a business, a commercial,
or an agricultural purpose.
(8) An installment agreement for the purchase of home fuels in
which a finance charge is not imposed.
(9) Loans made, insured, or guaranteed under a program
authorized by Title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.).
(10) Transactions in securities or commodities accounts in which
credit is extended by a broker-dealer registered with the Securities
and Exchange Commission or the Commodity Futures Trading
Commission.
(11) Except for IC 24-4.5-3-502.1(4), IC 24-4.5-3-503.3, IC 24-4.5-3-505(4), and IC 24-4.5-3-505(5), a loan made:
(A) in compliance with the requirements of; and
(B) by a community development corporation (as defined in IC 4-4-28-2) acting as a subrecipient of funds from;
the Indiana housing and community development authority
established by IC 5-20-1-3.
(12) Except for IC 24-4.5-3-502.1(4), IC 24-4.5-3-503.3, IC 24-4.5-3-505(4), and IC 24-4.5-3-505(5), a subordinate lien
mortgage transaction made by an entity that exclusively uses
funds provided by the United States Department of Housing and
Urban Development under Title 1 of the Housing and Community
Development Act of 1974, Public Law 93-383, as amended (42
U.S.C. 5301 et seq.).
(13) The United States, any state or local government, or any
agency or instrumentality of any governmental entity, including
United States government sponsored enterprises and state
educational institutions (as defined in IC 21-7-13-32). For
purposes of this subdivision, an "instrumentality" of a
governmental entity includes a foundation, a corporate or
nonprofit subsidiary, or an affiliate (as defined in IC 24-4.5-1-301.5(1)) of the governmental entity.
(14) A bona fide nonprofit organization not operating in a
commercial context, as determined by the director, if the
following criteria are satisfied:
(A) Subject to clause (B), the organization originates only one
(1) or both of the following types of mortgage transactions:
(i) Zero (0) interest first lien mortgage transactions.
(ii) Zero (0) interest subordinate lien mortgage transactions.
(B) The organization does not require, under the terms of the
mortgage or otherwise, balloon payments with respect to the
mortgage transactions described in clause (A).
(C) The organization is exempt from federal income taxation
under Section 501(c)(3) of the Internal Revenue Code.
(D) The organization's primary purpose is to serve the public by
helping low income individuals and families build, repair, and
purchase housing.
(E) The organization uses only:
(i) unpaid volunteers; or
(ii) employees whose compensation is not based on the
number or size of any mortgage transactions that the
employees originate;
to originate the mortgage transactions described in clause (A).
(F) The organization does not charge loan origination fees in
connection with the mortgage transactions described in clause
(A).
(15) A bona fide nonprofit organization (as defined in section
301.5 of this chapter) if the following criteria are satisfied:
(A) For each calendar year that the organization seeks the
exemption provided by this subdivision, the organization
certifies, not later than December 31 of the preceding calendar
year and on a form prescribed by the director and accompanied
by such documentation as required by the director, that the
organization is a bona fide nonprofit organization (as defined in
section 301.5(45) of this chapter).
(B) The director determines that the organization originates
only mortgage transactions that are favorable to the debtor. For
purposes of this clause, a mortgage transaction is favorable to
the debtor if the director determines that the terms of the
mortgage transaction are consistent with terms of mortgage
transactions made in a public or charitable context, rather than
in a commercial context.
Formerly: Acts 1971, P.L.366, SEC.2. As amended by Acts
1981, P.L.217, SEC.1; Acts 1982, P.L.149, SEC.1; P.L.247-1983,
SEC.1; P.L.14-1992, SEC.7; P.L.176-1996, SEC.2; P.L.73-2004,
SEC.16; P.L.1-2006, SEC.410 and P.L.181-2006, SEC.57;
P.L.35-2010, SEC.39; P.L.89-2011, SEC.11; P.L.9-2011, SEC.2;
P.L.6-2012, SEC.166; P.L.27-2012, SEC.14; P.L.186-2015, SEC.11;
P.L.176-2019, SEC.11.