§ 24-7-4-13 — Acceptance and application of payments; payments exceeding scheduled amount due

Indiana § 24-7-4-13

• Jurisdiction: Indiana
• Art. 7: RENTAL PURCHASE AGREEMENTS
• Ch. 4: Limitations

Text

(a) Except as provided in subsection (b), a
lessor may not accept payment from a lessee and hold the amount of
the payment in a reserve account for future payments. Any amounts
paid by a lessee must be applied:
(1) as an initial rental payment;
(2) as a regular rental payment; or
(3) to an accrued additional charge under IC 24-7-5.
(b) If a lessee makes a payment that exceeds the sum of the
scheduled regular rental payment and any permitted additional charges
that are due, the lessor may hold the excess funds in a reserve account
subject to the following conditions:
(1) The balance of the lessee's reserve account may not exceed the
amount of the next scheduled regular rental payment.
(2) If the balance in the lessee's reserve account reaches the limit
specified in subdivision (1), the lessor shall apply the funds to the
lessee's next scheduled regular rental payment.
(c) This section may not be construed to preclude a lessor from
accepting and applying:
(1) an initial rental payment; or
(2) multiple regular rental payments;
before the rental payments' scheduled due dates.

Legislative History

As added by P.L.35-2010, SEC.90. Amended by P.L.69-2018, SEC.38.