§ 24-4.5-5-107 — Extortionate extensions of credit

Extortionate Extensions of Credit — (1)
If it is the understanding of the creditor and the debtor at the time an
extension of credit is made that delay in making repayment or failure
to make repayment could result in the use of violence or other criminal
means to cause harm to the person, reputation, or property of any
person, the repayment of the extension of credit is unenforceable
through civil judicial processes against the debtor.
(2) If it is shown that an extension of credit was made at an annual
rate exceeding forty-five percent (45%) calculated according to the
actuarial method and that the creditor then had a reputation for the use
or threat of use of violence or other criminal means to cause harm to
the person, reputation, or property of any person to collect extensions
of credit or to punish the nonrepayment thereof, there is prima facie
evidence that the extension of credit was unenforceable under
subsection (1).
Formerly: Acts 1971, P.L.366, SEC.6.