§ 24-4.5-2-405 — Balloon payments

Indiana § 24-4.5-2-405

• Jurisdiction: Indiana
• Art. 4.5: UNIFORM CONSUMER CREDIT CODE
• Ch. 2: Credit Sales

Text

(1) With respect to a consumer credit sale,
other than one pursuant to a revolving charge account or one on which
only credit service charges are payable before the time that the final
scheduled payment is due, if any scheduled payment is more than twice
as large as the average of earlier scheduled payments, the buyer has the
right to refinance the amount of that payment at the time it is due
without penalty. The terms of the refinancing shall be no less favorable
to the buyer than the terms of the original sale. This section does not
apply to the extent that the payment schedule is adjusted to the seasonal
or irregular income of the buyer.
(2) For the purposes of this section, "terms of the refinancing" means:
(a) in the case of a fixed-rate consumer credit sale, the individual
payment amounts, the charges as a result of default by the buyer,
and the rate of the credit service charge; and
(b) in the case of a variable rate consumer credit sale, the method
used to determine the individual payment amounts, the charges as
a result of default by the buyer, the method used to determine the
rate of the credit service charge, the circumstances under which the
rate of the credit service charge may increase, and any limitations
on the increase in the rate of the credit service charge.
Formerly: Acts 1971, P.L.366, SEC.3. As amended by
P.L.247-1983, SEC.10.