§ 28-1-29-1 — Definitions

Indiana § 28-1-29-1

• Jurisdiction: Indiana
• Art. 1: DEPARTMENT OF FINANCIAL INSTITUTIONS
• Ch. 29: Debt Management Companies

Text

The following words, when used in this
chapter, shall have the meaning ascribed to them unless the context
clearly requires a different meaning:
(1) "Person" includes individuals, sole proprietorships,
partnerships, limited liability companies, trusts, joint ventures,
corporations, unincorporated organizations, other entities, and
their affiliates, however organized.
(2) "Debt management company" is any person doing business as
a budget counseling, credit counseling, debt management, or debt
pooling service or holding the person out, by words of similar
import, as providing services to debtors in the management of
their debts, and having a written agreement with the debtor to
disburse money or anything of value. The term includes the
following:
(A) A person that simply holds any money, funds, check,
personal check, money order, personal money order, draft, or
any other instrument for the transmission of money.
(B) A person or an entity known as a "budget service
company".
The term does not include a person that provides debt settlement
services (as defined in IC 24-5-15-2.5).
(3) "License" means a license issued under the provisions of this
chapter.
(4) "Licensee" means any person to whom a license has been
issued pursuant to the provisions of this chapter.
(5) "Contract debtor" means a debtor who has entered into a
written agreement with a licensee.
(6) "Debt" means an obligation arising out of personal, family, or
household use.
(7) "Debtor" means an individual whose principal debts and
obligations arise out of personal, family, or household use and not
out of business purpose transactions.
(8) "Department" means the members of the department of
financial institutions.
(9) "Indiana contract debtor" means a contract debtor whose
principal residence is located in Indiana.
(10) "Affiliate" means a person that, directly or indirectly, through
one (1) or more intermediaries:
(A) controls;
(B) is controlled by; or
(C) is under common control with;
a person subject to this chapter.
(11) "Fee" means the total amount of money charged to a contract
debtor by a debt management company for the administration of
a debt management plan.
(12) "Plan" means a written debt repayment program in which a
debt management company furnishes debt management services
to a contract debtor and that includes a schedule of payments to
be made by or on behalf of the contract debtor and used to pay
debts owed by the contract debtor.
(13) "Principal amount of the debt" means the total amount of a
debt at the time the contract debtor enters into an agreement.
(14) "Agreement" means an agreement between a debt
management company and a debtor for the performance of debt
management services.
(15) "Trust account" means an account held by a licensee that is:
(A) established in a bank insured by the Federal Deposit
Insurance Corporation;
(B) separate from other accounts held by the licensee;
(C) except as otherwise permitted under section 9(a) of this
chapter, maintained specifically for the benefit of the licensee's
Indiana contract debtors;
(D) designated as a trust account indicating that the money in
the trust account is not the money of the licensee; and
(E) used to hold money of one (1) or more Indiana contract
debtors for disbursement to creditors of the Indiana contract
debtors.
(16) "Month" means a calendar month.
(17) "Day" means a calendar day.
(18) "Concessions" means assent to repayment of a debt on terms
more favorable to a contract debtor than the terms of the contract
between that debtor and a creditor.
(19) "Good faith" means honesty in fact and the observance of
reasonable standards of fair dealing.
(20) "Control of a related interest" refers to a situation in which
a person, directly or indirectly, or through or in concert with one
(1) or more other persons, possesses any of the following:
(A) The ownership of, control of, or power to vote at least
twenty-five percent (25%) of the voting securities of a related
interest.
(B) The control in any manner of the election of a majority of
the directors of a related interest.
(C) The power to exercise a controlling influence over the
management or policies of a related interest. For purposes of
this clause, a person is presumed to have control, including the
power to exercise a controlling influence over the management
or policies of the related interest, if the person:
(i) is an executive officer or a director of the related interest
and directly or indirectly owns, controls, or has the power to
vote more than ten percent (10%) of any class of voting
securities of the related interest; or
(ii) directly or indirectly owns, controls, or has the power to
vote more than ten percent (10%) of any class of voting
securities of the related interest and no other person owns,
controls, or has the power to vote a greater percentage of that
class of voting securities.
(21) "Lead generator" means a person that, in the regular course
of business:
(A) supplies a debt management company with the name of a
potential contract debtor;
(B) directs an individual to contact or communicate with a debt
management company; or
(C) otherwise refers a debtor to a debt management company.
Formerly: Acts 1971, P.L.397, SEC.1; Acts 1972, P.L.10,
SEC.6. As amended by P.L.14-1992, SEC.107; P.L.42-1993, SEC.46;
P.L.196-1996, SEC.1; P.L.90-2008, SEC.27; P.L.35-2010, SEC.119;
P.L.89-2011, SEC.36; P.L.216-2013, SEC.20.