§ 24-4.5-3-109 — "Loan finance charge"

(1) "Loan finance charge" means the sum
of:
(a) all charges payable directly or indirectly by the debtor and
imposed directly or indirectly by the lender as an incident to the
extension of credit, including any of the following types of
charges which are applicable: interest or any amount payable
under a point, discount, or other system of charges, however
denominated, premium or other charge for any guarantee or
insurance protecting the lender against the debtor's default or
other credit loss; and
(b) charges incurred for investigating the collateral or
credit-worthiness of the debtor.
The term does not include charges as a result of default, additional
charges (IC 24-4.5-3-202), delinquency charges (IC 24-4.5-3-203.5),
or deferral charges (IC 24-4.5-3-204). The term does not include
charges paid or payable to a third party that are not required by the
lender as a condition or incident to the extension of credit except for
borrower paid mortgage broker fees, including fees paid directly to the
broker or the lender (for delivery to the broker), whether the fees are
paid in cash or financed. However, borrower paid mortgage broker fees
do not include fees paid to a mortgage broker by a creditor, including
yield spread premiums and service release fees.
(2) If a lender makes a loan to a debtor by purchasing or satisfying
obligations of the debtor pursuant to a lender credit card or similar
arrangement, and the purchase or satisfaction is made at less than the
face amount of the obligation, the discount is not part of the loan
finance charge.
Formerly: Acts 1971, P.L.366, SEC.4. As amended by
P.L.247-1983, SEC.15; P.L.14-1992, SEC.24; P.L.172-1997,
SEC.4.