Indiana § 28-7-5-28.5 Additional charge; servicing fee

Indiana Statutes

§ 28-7-5-28.5 — Additional charge; servicing fee

Indiana § 28-7-5-28.5

Art. 7SPECIALIZED FINANCIAL INSTITUTIONS

Ch. 5Pawnbrokers

This text of Indiana § 28-7-5-28.5 (Additional charge; servicing fee) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 28-7-5-28.5 (2026).

Text

5.

(a)Except as provided in subsection (b), in addition to the loan finance charge authorized by section 28 of this chapter, a pawnbroker may charge, contract for, and receive a fee not to exceed one-fifth (1/5) of the principal amount of the loan per month or any fractional part of a month for servicing the pledge that may include investigating the title, storing, providing security, appraisal, handling, making daily reports to local law enforcement officers, and for other expenses and costs associated with servicing the pledge. The fee for each month after the second month of the loan transaction is limited to one-thirtieth (1/30) of the monthly fee for each day the loan is outstanding. Such a charge when made and collected is not interest and is not a rate under IC 35-45-7-1.

(b)If a

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5. (a) Except as provided in subsection (b),
in addition to the loan finance charge authorized by section 28 of this
chapter, a pawnbroker may charge, contract for, and receive a fee not
to exceed one-fifth (1/5) of the principal amount of the loan per month
or any fractional part of a month for servicing the pledge that may
include investigating the title, storing, providing security, appraisal,
handling, making daily reports to local law enforcement officers, and
for other expenses and costs associated with servicing the pledge. The
fee for each month after the second month of the loan transaction is
limited to one-thirtieth (1/30) of the monthly fee for each day the loan
is outstanding. Such a charge when made and collected is not interest
and is not a rate under IC 35-45-7-1.
(b) If a loan is renewed or extended, the monthly fee authorized by
subsection (a) accrues at a rate of one-thirtieth (1/30) of the monthly
fee each day:
(1) beginning upon the expiration of two (2) months after the
original date of the loan; and
(2) continuing through and including the day a pledger redeems
the pledge.

Legislative History

As added by P.L.14-1992, SEC.152. Amended by P.L.42-1993, SEC.81; P.L.63-2001, SEC.19; P.L.134-2001, SEC.21; and P.L.163-2001, SEC.5; P.L.258-2003, SEC.13.