Indiana § 24-4.5-1-301.5 Definitions

Indiana Statutes

§ 24-4.5-1-301.5 — Definitions

Indiana § 24-4.5-1-301.5

Art. 4.5UNIFORM CONSUMER CREDIT CODE

Ch. 1General Provisions and Definitions

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Bluebook

Ind. Code § 24-4.5-1-301.5 (2026).

Text

5. In addition to definitions appearing in subsequent chapters in this article, the following definitions apply throughout this article:

(1)"Affiliate", with respect to any person subject to this article, means a person that, directly or indirectly, through one (1) or more intermediaries:

(a)controls;

(b)is controlled by; or

(c)is under common control with; the person subject to this article.

(2)"Agreement" means the bargain of the parties in fact as found in their language or by implication from other circumstances, including course of dealing or usage of trade or course of performance.

(3)"Agricultural purpose" means a purpose related to the production, harvest, exhibition, marketing, transportation, processing, or manufacture of agricultural products by a natural person who cultiv

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5. In addition to definitions appearing
in subsequent chapters in this article, the following definitions apply
throughout this article:
(1) "Affiliate", with respect to any person subject to this article,
means a person that, directly or indirectly, through one (1) or more
intermediaries:
(a) controls;
(b) is controlled by; or
(c) is under common control with;
the person subject to this article.
(2) "Agreement" means the bargain of the parties in fact as found in
their language or by implication from other circumstances, including
course of dealing or usage of trade or course of performance.
(3) "Agricultural purpose" means a purpose related to the
production, harvest, exhibition, marketing, transportation, processing,
or manufacture of agricultural products by a natural person who
cultivates, plants, propagates, or nurtures the agricultural products.
"Agricultural products" includes agricultural, horticultural, viticultural,
and dairy products, livestock, wildlife, poultry, bees, forest products,
fish and shellfish, and any and all products raised or produced on farms
and any processed or manufactured products thereof.
(4) "Average daily balance" means the sum of each of the daily
balances in a billing cycle divided by the number of days in the billing
cycle, and if the billing cycle is a month, the creditor may elect to treat
the number of days in each billing cycle as thirty (30).
(5) "Closing costs" with respect to a subordinate lien mortgage
transaction includes:
(a) fees or premiums for title examination, title insurance, or
similar purposes, including surveys;
(b) fees for preparation of a deed, settlement statement, or other
documents;
(c) escrows for future payments of taxes and insurance;
(d) fees for notarizing deeds and other documents;
(e) appraisal fees; and
(f) fees for credit reports.
(6) "Conspicuous" refers to a term or clause when it is so written
that a reasonable person against whom it is to operate ought to have
noticed it.
(7) "Consumer credit" means credit offered or extended to a
consumer primarily for a personal, family, or household purpose.
(8) "Consumer credit sale" is a sale of goods, services, or an interest
in land in which:
(a) credit is granted by a person who regularly engages as a seller
in credit transactions of the same kind;
(b) the buyer is a person other than an organization;
(c) the goods, services, or interest in land are purchased primarily
for a personal, family, or household purpose;
(d) either the debt is payable in installments or a credit service
charge is made; and
(e) with respect to a sale of goods or services, 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 CFR
226.3 or 12 CFR 1026.3(b), as applicable); or
(ii) the debt is secured by personal property used or expected to
be used as the principal dwelling of the buyer.
Unless the sale is made subject to this article by agreement (IC 24-4.5-2-601), "consumer credit sale" does not include a sale in
which the seller allows the buyer to purchase goods or services
pursuant to a lender credit card or similar arrangement or, except
as provided with respect to disclosure (IC 24-4.5-2-301), debtors'
remedies (IC 24-4.5-5-201), providing payoff amounts (IC 24-4.5-2-209), and powers and functions of the department (IC 24-4.5-6), a sale of an interest in land which is a first lien
mortgage transaction.
(9) "Consumer loan" means a loan made by a person regularly
engaged in the business of making loans in which:
(a) the debtor is a person other than an organization;
(b) the debt is primarily for a personal, family, or household
purpose;
(c) either the debt is payable in installments or a loan finance
charge is made; and
(d) 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 CFR
226.3 or 12 CFR 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.
Except as described in IC 24-4.5-3-105, the term does not include a
first lien mortgage transaction.
(10) "Credit" means the right granted by a creditor to a debtor to
defer payment of debt or to incur debt and defer its payment.
(11) "Creditor" means a person:
(a) who regularly engages in the extension of consumer credit that
is subject to a credit service charge or loan finance charge, as
applicable, or is payable by written agreement in more than four
(4) installments (not including a down payment); and
(b) to whom the obligation is initially payable, either on the face
of the note or contract, or by agreement when there is not a note
or contract.
(12) "Depository institution" has the meaning set forth in the
Federal Deposit Insurance Act (12 U.S.C. 1813(c)) and includes any
credit union.
(13) "Director" means the director of the department of financial
institutions or the director's designee.
(14) "Dwelling" means a residential structure that contains one (1)
to four (4) units, regardless of whether the structure is attached to real
property. The term includes an individual:
(a) condominium unit;
(b) cooperative unit;
(c) mobile home; or
(d) trailer;
that is used as a residence.
(15) "Earnings" means compensation paid or payable for personal
services, whether denominated as wages, salary, commission, bonus,
or otherwise, and includes periodic payments under a pension or
retirement program.
(16) "Employee" means an individual who is paid wages or other
compensation by an employer required under federal income tax law
to file Form W-2 on behalf of the individual.
(17) "Federal banking agencies" means the Board of Governors of
the Federal Reserve System, the Office of the Comptroller of the
Currency, the National Credit Union Administration, and the Federal
Deposit Insurance Corporation.
(18) "First lien mortgage transaction" means:
(a) a consumer loan; or
(b) a consumer credit sale;
that is or will be used by the debtor primarily for personal, family, or
household purposes and that is secured by a mortgage or a land
contract (or another consensual security interest equivalent to a
mortgage or a land contract) that constitutes a first lien on a dwelling
or on residential real estate upon which a dwelling is constructed or
intended to be constructed.
(19) "Immediate family member" means a spouse, child, sibling,
parent, grandparent, or grandchild. The term includes stepparents,
stepchildren, stepsiblings, and adoptive relationships.
(20) "Individual" means a natural person.
(21) "Lender credit card or similar arrangement" means an
arrangement or loan agreement, other than a seller credit card, pursuant
to which a lender gives a debtor the privilege of using a credit card,
letter of credit, or other credit confirmation or identification in
transactions out of which debt arises:
(a) by the lender's honoring a draft or similar order for the
payment of money drawn or accepted by the debtor;
(b) by the lender's payment or agreement to pay the debtor's
obligations; or
(c) by the lender's purchase from the obligee of the debtor's
obligations.
(22) "Licensee" means a person licensed as a creditor under this
article.
(23) "Loan brokerage business" means any activity in which a
person, in return for any consideration from any source, procures,
attempts to procure, or assists in procuring, a mortgage transaction
from a third party or any other person, whether or not the person
seeking the mortgage transaction actually obtains the mortgage
transaction.
(24) "Loan processor or underwriter" means an individual who
performs clerical or support duties as an employee at the direction of,
and subject to the supervision and instruction of, a person licensed to
engage in mortgage transactions or a person exempt from licensing. For
purposes of this subdivision, the term "clerical or support duties" may
include, after the receipt of an application, the following:
(a) The receipt, collection, distribution, and analysis of
information common for the processing or underwriting of a
mortgage transaction.
(b) The communication with a consumer to obtain the information
necessary for the processing or underwriting of a loan, to the
extent that the communication does not include:
(i) offering or negotiating loan rates or terms; or
(ii) counseling consumers about mortgage transaction rates or
terms.
The term "loan processor or underwriter" does not include an
individual who is an employee of a person that is not engaged in
mortgage transactions as a creditor if that person is permitted to
voluntarily register with the department to sponsor the individual under
IC 24-4.4-1-202(b)(8) to engage solely in the activities described in this
subdivision. An individual engaging solely in loan processor or
underwriter activities shall not represent to the public through
advertising or other means of communicating or providing information,
including the use of business cards, stationery, brochures, signs, rate
lists, or other promotional items, that the individual can or will perform
any of the activities of a mortgage loan originator. However, an
individual who is licensed as a mortgage loan originator under IC 24-4.4 and 750 IAC 9-3, and who is sponsored by a person, as
permitted by IC 24-4.4-1-202(b)(8), to engage solely as a third party
loan processor or underwriter, is subject to the prohibition set forth in
this subdivision with respect to the individual's engagement under the
sponsorship.
(25) "Mortgage loan originator" means an individual who, for
compensation or gain, or in the expectation of compensation or gain,
regularly engages in taking a mortgage transaction application or in
offering or negotiating the terms of a mortgage transaction that either
is made under this article or under IC 24-4.4 or is made by an employee
of a person licensed to engage in mortgage transactions or by an
employee of a person that is exempt from licensing, while the employee
is engaging in the loan brokerage business. The term does not include
the following:
(a) An individual engaged solely as a loan processor or
underwriter as long as the individual works exclusively as an
employee of a person licensed to engage in mortgage transactions
or as an employee of a person exempt from licensing. However,
the term includes an individual who is licensed as a mortgage
loan originator under IC 24-4.4 and 750 IAC 9-3 and who is an
employee of a person that is not engaged in mortgage transactions
as a creditor if that person voluntarily registers with the
department to sponsor the individual under IC 24-4.4-1-202(b)(8),
to engage solely as a third party processor or underwriter.
(b) Unless the person or entity is compensated by:
(i) a creditor;
(ii) a loan broker;
(iii) another mortgage loan originator; or
(iv) any agent of the creditor, loan broker, or other mortgage
loan originator described in items (i) through (iii);
a person or entity that only performs real estate brokerage
activities and is licensed or registered in accordance with
applicable state law.
(c) A person solely involved in extensions of credit relating to
timeshare plans (as defined in 11 U.S.C. 101(53D)).
(26) "Mortgage servicer" means the last person to whom a
mortgagor or the mortgagor's successor in interest has been instructed
by a mortgagee to send payments on a loan secured by a mortgage.
(27) "Mortgage transaction" means:
(a) a consumer loan; or
(b) a consumer credit sale;
that is or will be used by the debtor primarily for personal, family, or
household purposes and that is secured by a mortgage or a land
contract (or another consensual security interest equivalent to a
mortgage or a land contract) on a dwelling or on residential real estate
upon which a dwelling is constructed or intended to be constructed.
(28) "Nationwide Multistate Licensing System and Registry" (or
"Nationwide Mortgage Licensing System and Registry" or "NMLSR")
means a multistate licensing system owned and operated by the State
Regulatory Registry, LLC, or by any successor or affiliated entity, for
the licensing and registration of creditors, mortgage loan originators,
and other persons in the mortgage or financial services industries. The
term includes any other name or acronym that may be assigned to the
system by the State Regulatory Registry, LLC, or by any successor or
affiliated entity.
(29) "Nontraditional mortgage product" means any mortgage
product other than a thirty (30) year fixed rate mortgage.
(30) "Official fees" means:
(a) fees and charges prescribed by law which actually are or will
be paid to public officials for determining the existence of or for
perfecting, releasing, or satisfying a security interest related to a
consumer credit sale, consumer lease, or consumer loan; or
(b) premiums payable for insurance in lieu of perfecting a security
interest otherwise required by the creditor in connection with the
sale, lease, or loan, if the premium does not exceed the fees and
charges described in subdivision (a) that would otherwise be
payable.
(31) "Organization" means a corporation, a government or
governmental subdivision, an agency, a trust, an estate, a partnership,
a limited liability company, a cooperative, an association, a joint
venture, an unincorporated organization, or any other entity, however
organized.
(32) "Payable in installments" means that payment is required or
permitted by written agreement to be made in more than four (4)
installments not including a down payment.
(33) "Person" includes an individual or an organization.
(34) "Person related to" with respect to an individual means:
(a) the spouse of the individual;
(b) a brother, brother-in-law, sister, or sister-in-law of the
individual;
(c) an ancestor or lineal descendants of the individual or the
individual's spouse; and
(d) any other relative, by blood or marriage, of the individual or
the individual's spouse who shares the same home with the
individual.
(35) "Person related to" with respect to an organization means:
(a) a person directly or indirectly controlling, controlled by, or
under common control with the organization;
(b) a director, an executive officer, or a manager of the
organization or a person performing similar functions with respect
to the organization or to a person related to the organization;
(c) the spouse of a person related to the organization; and
(d) a relative by blood or marriage of a person related to the
organization who shares the same home with the person.
(36) "Presumed" or "presumption" means that the trier of fact must
find the existence of the fact presumed, unless and until evidence is
introduced that would support a finding of its nonexistence.
(37) "Real estate brokerage activity" means any activity that
involves offering or providing real estate brokerage services to the
public, including the following:
(a) Acting as a real estate agent or real estate broker for a buyer,
seller, lessor, or lessee of real property.
(b) Bringing together parties interested in the sale, purchase,
lease, rental, or exchange of real property.
(c) Negotiating, on behalf of any party, any part of a contract
relating to the sale, purchase, lease, rental, or exchange of real
property (other than in connection with providing financing with
respect to the sale, purchase, lease, rental, or exchange of real
property).
(d) Engaging in any activity for which a person is required to be
registered or licensed as a real estate agent or real estate broker
under any applicable law.
(e) Offering to engage in any activity, or act in any capacity,
described in this subsection.
(38) "Registered mortgage loan originator" means any individual
who:
(a) meets the definition of mortgage loan originator and is an
employee of:
(i) a depository institution;
(ii) a subsidiary that is owned and controlled by a depository
institution and regulated by a federal banking agency; or
(iii) an institution regulated by the Farm Credit Administration;
and
(b) is registered with, and maintains a unique identifier through,
the NMLSR.
(39) "Regularly engaged", with respect to a person who extends
consumer credit, refers to a person who:
(a) extended consumer credit:
(i) more than twenty-five (25) times; or
(ii) more than five (5) times for a mortgage transaction secured
by a dwelling;
in the preceding calendar year; or
(b) extends or will extend consumer credit:
(i) more than twenty-five (25) times; or
(ii) more than five (5) times for a mortgage transaction secured
by a dwelling;
in the current calendar year, if the person did not meet the
numerical standards described in subdivision (a) in the preceding
calendar year.
(40) "Residential real estate" means any real property that is located
in Indiana and on which there is located or intended to be constructed
a dwelling.
(41) "Seller credit card" means an arrangement that gives to a buyer
or lessee the privilege of using a credit card, letter of credit, or other
credit confirmation or identification for the purpose of purchasing or
leasing goods or services from that person, a person related to that
person, or from that person and any other person. The term includes a
card that is issued by a person, that is in the name of the seller, and that
can be used by the buyer or lessee only for purchases or leases at
locations of the named seller.
(42) "Subordinate lien mortgage transaction" means:
(a) a consumer loan; or
(b) a consumer credit sale;
that is or will be used by the debtor primarily for personal, family, or
household purposes and that is secured by a mortgage or a land
contract (or another consensual security interest equivalent to a
mortgage or a land contract) that constitutes a subordinate lien on a
dwelling or on residential real estate upon which a dwelling is
constructed or intended to be constructed.
(43) "Unique identifier" means a number or other identifier assigned
by protocols established by the NMLSR.
(44) "Land contract" means a contract for the sale of real estate in
which the seller of the real estate retains legal title to the real estate
until the total contract price is paid by the buyer.
(45) "Bona fide nonprofit organization" means an organization that
does the following, as determined by the director under criteria
established by the director:
(a) Maintains tax exempt status under Section 501(c)(3) of the
Internal Revenue Code.
(b) Promotes affordable housing or provides home ownership
education or similar services.
(c) Conducts the organization's activities in a manner that serves
public or charitable purposes.
(d) Receives funding and revenue and charges fees in a manner
that does not encourage the organization or the organization's
employees to act other than in the best interests of the
organization's clients.
(e) Compensates the organization's employees in a manner that
does not encourage employees to act other than in the best
interests of the organization's clients.
(f) Provides to, or identifies for, debtors mortgage transactions
with terms that are favorable to the debtor (as described in section
202(b)(15) of this chapter) and comparable to mortgage
transactions and housing assistance provided under government
housing assistance programs.
(g) Maintains certification by the United States Department of
Housing and Urban Development or employs counselors who are
certified by the Indiana housing and community development
authority.

Legislative History

As added by P.L.35-2010, SEC.41. Amended by P.L.89-2011, SEC.12; P.L.27-2012, SEC.15; P.L.216-2013, SEC.7; P.L.137-2014, SEC.6; P.L.73-2016, SEC.5; P.L.153-2016, SEC.2; P.L.85-2017, SEC.94; P.L.159-2017, SEC.6; P.L.69-2018, SEC.13; P.L.176-2019, SEC.12; P.L.197-2023, SEC.9; P.L.9-2024, SEC.448.