§ 24-4.5-7-102 — Applicability; authority to make, take assignment of, or collect small loans; license required; application; separate license required for activities involving consumer loans; "regularly engages"

(1) Except as otherwise provided, all
provisions of this article applying to consumer loans, including IC 24-4.5-3-502.2, apply to small loans, as defined in this chapter.
(2) Subject to subsection (7), a person may not regularly engage in
Indiana in any of the following actions unless the department first
issues to the person a license under this chapter:
(a) The making of small loans.
(b) Taking assignments of small loans.
(c) Undertaking the direct collection of payments from or the
enforcement of rights against debtors arising from small loans.
(3) Subject to subsection (4), a person that seeks licensure under
this chapter:
(a) shall apply to the department for a license in the form and
manner prescribed by the department; and
(b) is subject to the same licensure requirements and procedures
as an applicant for a license to make consumer loans (other than
mortgage transactions) under IC 24-4.5-3-502.
(4) A person that seeks to make, take assignments of, or undertake
the direct collection of payments from or the enforcement of rights
against debtors arising from both:
(a) small loans under this chapter; and
(b) consumer loans (other than mortgage transactions) that are not
small loans;
must obtain a separate license from the department for each type of
loan, as described in IC 24-4.5-3-502(5).
(5) This chapter applies to:
(a) a lender;
(b) a bank, savings association, credit union, or other state or
federally regulated financial institution except those that are
specifically exempt regarding limitations on interest rates and
fees; or
(c) a person, if the department determines that a transaction is:
(i) in substance a disguised loan; or
(ii) the application of subterfuge for the purpose of avoiding
this chapter.
(6) A loan that:
(a) does not qualify as a small loan under section 104 of this
chapter;
(b) is for a term shorter than that specified in section 401(1) of
this chapter; or
(c) is made in violation of section 201, 401, 402, 404, or 410 of
this chapter;
is subject to this article. The department may conform the loan finance
charge for a loan described in this subsection to the limitations set forth
in IC 24-4.5-3-508(2).
(7) Notwithstanding IC 24-4.5-1-301.5, for purposes of subsection
(2), a person "regularly engages" in any of the activities described in
subsection (2) with respect to a small loan if the person:
(a) performed any of the activities described in subsection (2)
with respect to a small loan at least one (1) time in the preceding
calendar year; or
(b) performs or will perform any of the activities described in
subsection (2) with respect to a small loan at least one (1) time in
the current calendar year if the person did not perform any of the
activities described in subsection (2) with respect to a small loan
at least one (1) time in the preceding calendar year.

Legislative History

As added by P.L.38-2002, SEC.1. Amended by P.L.10-2006, SEC.11 and P.L.57-2006, SEC.11; P.L.213-2007, SEC.21; P.L.217-2007, SEC.20; P.L.35-2010, SEC.82; P.L.137-2014, SEC.17; P.L.186-2015, SEC.23; P.L.69-2018, SEC.25.