Loan Finance Charge on Consolidation
—
(1)If a debtor owes an unpaid balance to a lender with respect to a
consumer loan, refinancing, or consolidation, and becomes obligated
on another consumer loan, refinancing, or consolidation with the same
lender, the parties may agree to a consolidation resulting in a single
schedule of payments. If the previous consumer loan, refinancing, or
consolidation was not precomputed, the parties may agree to add the
unpaid amount of principal and accrued charges on the date of
consolidation to the principal with respect to the subsequent loan. If the
previous consumer loan, refinancing, or consolidation was
precomputed, in the case of a transaction entered into before July 1,
2020, the parties may agree to refinance the unpaid balance pursuant
to the provi
Free access — add to your briefcase to read the full text and ask questions with AI
Loan Finance Charge on Consolidation
— (1) If a debtor owes an unpaid balance to a lender with respect to a
consumer loan, refinancing, or consolidation, and becomes obligated
on another consumer loan, refinancing, or consolidation with the same
lender, the parties may agree to a consolidation resulting in a single
schedule of payments. If the previous consumer loan, refinancing, or
consolidation was not precomputed, the parties may agree to add the
unpaid amount of principal and accrued charges on the date of
consolidation to the principal with respect to the subsequent loan. If the
previous consumer loan, refinancing, or consolidation was
precomputed, in the case of a transaction entered into before July 1,
2020, the parties may agree to refinance the unpaid balance pursuant
to the provisions on refinancing (IC 24-4.5-3-205) and to consolidate
the principal resulting from the refinancing by adding it to the principal
with respect to the subsequent loan. In either case the lender may
contract for and receive a loan finance charge based on the aggregate
principal resulting from the consolidation at a rate not in excess of that
permitted by the provisions on loan finance charge for consumer loans
(IC 24-4.5-3-201) or the provisions on loan finance charge for
supervised loans (IC 24-4.5-3-508), whichever is appropriate.
(2) The parties may agree to consolidate the unpaid balance of a
consumer loan with the unpaid balance of a consumer credit sale. The
parties may agree to refinance the previous unpaid balance pursuant to
the provisions on refinancing sales (IC 24-4.5-2-205) or the provisions
on refinancing loans (IC 24-4.5-3-205), whichever is appropriate, and
to consolidate the amount financed resulting from the refinancing or
the principal resulting from the refinancing by adding it to the amount
financed or principal with respect to the subsequent sale or loan. The
aggregate amount resulting from the consolidation shall be deemed
principal, and the creditor may contract for and receive a loan finance
charge based on the principal at a rate not in excess of that permitted
by the provisions on loan finance charge for consumer loans (IC 24-4.5-3-201) or the provisions on loan finance charge for supervised
loans (IC 24-4.5-3-508), whichever is appropriate.
Formerly: Acts 1971, P.L.366, SEC.4. As amended by
P.L.85-2020, SEC.13.