§ 24-4.5-2-208 — Advances to perform covenants of buyer

Advances to Perform Covenants of Buyer
— (1) If the agreement with respect to a consumer credit sale,
refinancing, or consolidation contains covenants by the buyer to
perform certain duties pertaining to insuring or preserving collateral
and the seller pursuant to the agreement pays for performance of the
duties on behalf of the buyer, the seller may add the amounts paid to
the debt. Within a reasonable time after advancing any sums, the seller
shall state to the buyer in writing the amount of the sums advanced, any
charges with respect to this amount, and any revised payment schedule
and, if the duties of the buyer performed by the seller pertain to
insurance, a brief description of the insurance paid for by the seller
including the type and amount of coverages. No further information
need be given.
(2) A credit service charge may be made for sums advanced pursuant
to subsection (1) at a rate not exceeding the rate stated to the buyer
pursuant to the provisions on disclosure (Part 3) with respect to the
sale, refinancing or consolidation, except that with respect to a
revolving charge account the amount of the advance may be added to
the unpaid balance of the account and the seller may make a credit
service charge not exceeding that permitted by the provisions on credit
service charge for revolving charge accounts (IC 24-4.5-2-201(6)).
Formerly: Acts 1971, P.L.366, SEC.3. As amended by
P.L.85-2020, SEC.6.