Indiana § 24-9-2-3 "Bona fide discount points"

Indiana Statutes

§ 24-9-2-3 — "Bona fide discount points"

Indiana·Art. 9 HOME LOAN PRACTICES·Ch. 2 Definitions

"Bona fide discount points" means loan discount points that:

(1)are knowingly paid by the borrower;

(2)are paid for the express purpose of reducing the interest rate applicable to the loan;

(3)reduce the interest rate from an interest rate that does not exceed the benchmark rate; and

(4)are recouped within the first four (4) years of the scheduled loan payments; if the reduction in the interest rate that is achieved by the payment of the loan discount points reduces the interest charged on the scheduled payments so that the borrower's dollar amount of savings in interest during the first four (4) years of the loan is equal to or greater than the dollar amount of loan discount points paid by the borrower.

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"Bona fide discount points" means loan discount
points that:
(1) are knowingly paid by the borrower;
(2) are paid for the express purpose of reducing the interest rate
applicable to the loan;
(3) reduce the interest rate from an interest rate that does not
exceed the benchmark rate; and
(4) are recouped within the first four (4) years of the scheduled
loan payments;
if the reduction in the interest rate that is achieved by the payment of
the loan discount points reduces the interest charged on the scheduled
payments so that the borrower's dollar amount of savings in interest
during the first four (4) years of the loan is equal to or greater than the
dollar amount of loan discount points paid by the borrower.

Indiana § 24-9-2-3 ("Bona fide discount points") — published by Counsel Stack Legal Research, free access to 12M+ legal documents.