§ 32-31-3-9 — "Security deposit" defined

Indiana § 32-31-3-9

• Jurisdiction: Indiana
• Title 32: PROPERTY
• Art. 31: LANDLORD-TENANT RELATIONS
• Ch. 3: Security Deposits

Text

(a) As used in this chapter, "security deposit"
means a deposit paid by a tenant to the landlord or the landlord's agent
to be held for all or a part of the term of the rental agreement to secure
performance of any obligation of the tenant under the rental agreement.
(b) The term includes:
(1) a required prepayment of rent other than the first full rental
payment period of the lease agreement;
(2) a sum required to be paid as rent in any rental period in excess
of the average rent for the term; and
(3) any other amount of money or property returnable to the
tenant on condition of return of the rental unit by the tenant in a
condition as required by the rental agreement.
(c) The term does not include the following:
(1) An amount paid for an option to purchase under a lease with
option to purchase, unless it is shown that the intent was to evade
this chapter.
(2) An amount paid as a subscription for or purchase of a
membership in a cooperative housing association incorporated
under Indiana law.
[Pre-2002 Recodification Citation: 32-7-5-9.]

Legislative History

As added by P.L.2-2002, SEC.16.