§ 24-4.5-3-205 — Loan finance charge on refinancing

Loan Finance Charge on Refinancing —
With respect to a consumer loan, refinancing, or consolidation, the
lender may by agreement with the debtor refinance the unpaid balance
and may contract for and receive a loan finance charge based on the
principal resulting from the refinancing at a rate not exceeding that
permitted by the provisions on a loan finance charge for consumer
loans (IC 24-4.5-3-201) or the provisions on a loan finance charge for
supervised loans (IC 24-4.5-3-508), whichever is appropriate. For the
purpose of determining the loan finance charge permitted, the principal
resulting from the refinancing comprises the following:
(a) If:
(i) the transaction was not precomputed, the total of the unpaid
balance and the accrued charges on the date of the refinancing;
or
(ii) the transaction was precomputed, in the case of a
transaction entered into before July 1, 2020, the amount which
the debtor would have been required to pay upon prepayment
pursuant to the provisions on rebate upon prepayment (IC 24-4.5-3-210) on the date of refinancing.
(b) Appropriate additional charges (IC 24-4.5-3-202), payment of
which is deferred.
Formerly: Acts 1971, P.L.366, SEC.4. As amended by
P.L.14-1992, SEC.28; P.L.85-2020, SEC.12.