Indiana § 24-4.5-7-402 Limits based on borrower's income; security; partial payments;
payments; loan documents; recision; renewal prohibited

Indiana Statutes

§ 24-4.5-7-402 — Limits based on borrower's income; security; partial payments; payments; loan documents; recision; renewal prohibited

Indiana·Art. 4.5 UNIFORM CONSUMER CREDIT CODE·Ch. 7 Small Loans

(1)A lender is prohibited from making a small loan to a borrower if the total of:

(a)the principal amount and finance charges of the small loan to be issued; plus

(b)any other small loan balances that the borrower has outstanding with any lender; exceeds twenty percent (20%) of the borrower's monthly gross income.

(2)A small loan may be secured by only one (1) check or authorization to debit the borrower's account per small loan. The check or electronic debit may not exceed the amount advanced to or on behalf of the borrower plus loan finance charges contracted for and permitted.

(3)A borrower may make partial payments in any amount on the small loan without charge at any time before the due date of the small loan.

(4)After any payment is made on a small loan, whether the payment is

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(1) A lender is prohibited from making
a small loan to a borrower if the total of:
(a) the principal amount and finance charges of the small loan to
be issued; plus
(b) any other small loan balances that the borrower has
outstanding with any lender;
exceeds twenty percent (20%) of the borrower's monthly gross income.
(2) A small loan may be secured by only one (1) check or
authorization to debit the borrower's account per small loan. The check
or electronic debit may not exceed the amount advanced to or on behalf
of the borrower plus loan finance charges contracted for and permitted.
(3) A borrower may make partial payments in any amount on the
small loan without charge at any time before the due date of the small
loan.
(4) After any payment is made on a small loan, whether the payment
is made in part or in full before, on, or after the due date of the small
loan, the lender shall give a signed and dated receipt to the borrower
making a payment showing the amount paid and the balance due on the
small loan.
(5) The lender shall provide to each borrower a copy of the required
loan documents before the disbursement of the loan proceeds.
(6) A borrower may rescind a small loan without cost by paying the
cash amount of the principal of the small loan to the lender not later
than the end of the business day immediately following the day on
which the borrower receives the proceeds.
(7) A lender shall not enter into a renewal with a borrower. If a loan
is paid in full, a subsequent loan is not a renewal.

Indiana § 24-4.5-7-402 (Limits based on borrower's income; security; partial payments; payments; loan documents; recision; renewal prohibited) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

As added by P.L.38-2002, SEC.1. Amended by P.L.73-2004, SEC.27; P.L.213-2007, SEC.26; P.L.217-2007, SEC.25; P.L.35-2010, SEC.84; P.L.27-2012, SEC.30; P.L.69-2018, SEC.29.