Indiana 2022 Regular Session

Indiana Senate Bill SB0383 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	ES0383.1
	2	+	February 15, 2022
	3	+	ENGROSSED
	4	+	SENATE BILL No. 383
	5	+	_____
	6	+	DIGEST OF SB 383 (Updated February 15, 2022 9:14 am - DI 140)
	7	+	Citations Affected: IC 24-4.4; IC 24-4.5; IC 24-7; IC 28-1; IC 28-7;
	8	+	IC 28-8; IC 28-10; IC 28-15.
	9	+	Synopsis: Financial institutions and consumer credit. Provides that a
	10	+	reference to federal law in: (1) the first lien mortgage lending act; (2)
	11	+	the Uniform Consumer Credit Code (UCCC); or (3) the Indiana Code
	12	+	title governing financial institutions; is a reference to the law as in
	13	+	effect December 31, 2021 (versus December 31, 2020, under current
	14	+	law). Amends the provisions in the UCCC governing authorized
	15	+	finance charges for consumer loans (other than supervised loans) and
	16	+	for supervised loans to specify that: (1) the entire section governing
	17	+	finance charges for consumer loans (other than supervised loans) does
	18	+	not apply to supervised loans; and (2) the loan finance charge for a
	19	+	supervised loan must be: (A) contracted for between the lender and the
	20	+	debtor; and (B) calculated by applying a rate not exceeding the
	21	+	authorized rate to unpaid balances of the principal. Amends provisions
	22	+	(Continued next page)
	23	+	Effective: Upon passage; July 1, 2022.
	24	+	Bassler, Zay
	25	+	(HOUSE SPONSOR — CARBAUGH)
	26	+	January 11, 2022, read first time and referred to Committee on Insurance and Financial
	27	+	Institutions.
	28	+	January 20, 2022, reported favorably — Do Pass.
	29	+	January 31, 2022, read second time, amended, ordered engrossed.
	30	+	February 1, 2022, engrossed. Read third time, passed. Yeas 49, nays 0.
	31	+	HOUSE ACTION
	32	+	February 8, 2022, read first time and referred to Committee on Financial Institutions and
	33	+	Insurance.
	34	+	February 15, 2022, reported — Do Pass.
	35	+	ES 383—LS 6690/DI 101 Digest Continued
	36	+	in the UCCC concerning permitted additional charges for guaranteed
	37	+	asset protection (GAP) agreements for: (1) consumer credit sales; and
	38	+	(2) consumer loans; to specify that the average retail value for a used
	39	+	motor vehicle that is the subject of a GAP agreement is to be
	40	+	determined by using a third party valuation service provider
	41	+	customarily relied upon in the used motor vehicle commercial market
	42	+	(versus by using the National Automobile Dealers Association average
	43	+	retail value, under current law). Amends the Indiana Code section
	44	+	concerning the department's duties of confidentiality with respect to
	45	+	certain information concerning financial institutions to specify that
	46	+	those duties apply to all regulated entities licensed or registered with
	47	+	the department. Specifies that the required fidelity coverage for credit
	48	+	unions: (1) applies to those directors, officers, and employees of the
	49	+	credit union who have access to money or bonds of the credit union;
	50	+	and (2) must be approved annually by the credit union's board of
	51	+	directors as to the amount and form. Amends the statute governing
	52	+	money transmitters to: (1) provide that a "payment instrument" does
	53	+	not include a "stored value account"; and (2) remove the definition of
	54	+	"stored value account". Changes references to a "federal savings and
	55	+	loan association" to a "federal savings association" for purposes of the
	56	+	statute concerning mergers, consolidations, and conversions involving
	57	+	federal savings associations and savings associations chartered in
	58	+	Indiana, to specify that a federal savings association may convert into
	59	+	a savings association chartered in Indiana.
	60	+	ES 383—LS 6690/DI 101ES 383—LS 6690/DI 101 February 15, 2022
1	61		Second Regular Session of the 122nd General Assembly (2022)
2	62		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	63		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	64		additions will appear in this style type, and deletions will appear in this style type.
5	65		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	66		provision adopted), the text of the new provision will appear in this style type. Also, the
7	67		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	68		a new provision to the Indiana Code or the Indiana Constitution.
9	69		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	70		between statutes enacted by the 2021 Regular Session of the General Assembly.
11		-	SENATE ENROLLED ACT No. 383
12		-	AN ACT to amend the Indiana Code concerning financial
13		-	institutions.
	71	+	ENGROSSED
	72	+	SENATE BILL No. 383
	73	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	74	+	financial institutions.
14	75		Be it enacted by the General Assembly of the State of Indiana:
15		-	SECTION 1. IC 24-4.4-1-102, AS AMENDED BY P.L.54-2021,
16		-	SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17		-	JULY 1, 2022]: Sec. 102. (1) This article shall be liberally construed
18		-	and applied to promote its underlying purposes and policies.
19		-	(2) The underlying purposes and policies of this article are:
20		-	(a) to permit and encourage the development of fair and
21		-	economically sound first lien mortgage lending practices; and
22		-	(b) to conform the regulation of first lien mortgage lending
23		-	practices to applicable state and federal laws, rules, regulations,
24		-	policies, and guidance.
25		-	(3) A reference to a requirement imposed by this article includes
26		-	reference to a related rule of the department adopted under this article.
27		-	(4) A reference to a federal law in this article is a reference to the
28		-	law as in effect December 31, 2020. 2021.
29		-	SECTION 2. IC 24-4.5-1-102, AS AMENDED BY P.L.54-2021,
30		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31		-	JULY 1, 2022]: Sec. 102. (1) This article shall be liberally construed
32		-	and applied to promote its underlying purposes and policies.
33		-	(2) The underlying purposes and policies of this article are:
34		-	(a) to simplify, clarify, and modernize the law governing retail
35		-	installment sales, consumer credit, small loans, and usury;
36		-	(b) to provide rate ceilings to assure an adequate supply of credit
37		-	SEA 383 2
38		-	to consumers;
39		-	(c) to further consumer understanding of the terms of credit
40		-	transactions and to foster competition among suppliers of
41		-	consumer credit so that consumers may obtain credit at
42		-	reasonable cost;
43		-	(d) to protect consumer buyers, lessees, and borrowers against
44		-	unfair practices by some suppliers of consumer credit, having due
45		-	regard for the interests of legitimate and scrupulous creditors;
46		-	(e) to permit and encourage the development of fair and
47		-	economically sound consumer credit practices;
48		-	(f) to conform the regulation of consumer credit transactions to
49		-	the policies of the Consumer Credit Protection Act (15 U.S.C.
50		-	1601 et seq.) and to applicable state and federal laws, rules,
51		-	regulations, policies, and guidance; and
52		-	(g) to make uniform the law, including administrative rules
53		-	among the various jurisdictions.
54		-	(3) A reference to a requirement imposed by this article includes
55		-	reference to a related rule or guidance of the department adopted
56		-	pursuant to this article.
57		-	(4) A reference to a federal law in this article is a reference to the
58		-	law as in effect December 31, 2020. 2021.
59		-	(5) This article applies to a transaction if the director determines
60		-	that the transaction:
61		-	(a) is in substance a disguised consumer credit transaction; or
62		-	(b) involves the application of subterfuge for the purpose of
63		-	avoiding this article.
64		-	A determination by the director under this subsection must be in
65		-	writing and shall be delivered to all parties to the transaction.
66		-	IC 4-21.5-3 applies to a determination made under this subsection.
67		-	(6) The authority of this article remains in effect, whether a licensee,
68		-	an individual, or a person subject to this article acts or claims to act
69		-	under any licensing or registration law of this state, or claims to act
70		-	without such authority.
71		-	(7) A violation of a state or federal law, regulation, or rule
72		-	applicable to consumer credit transactions is a violation of this article.
73		-	(8) The department may enforce penalty provisions set forth in 15
74		-	U.S.C. 1640 for violations of disclosure requirements applicable to
75		-	mortgage transactions.
76		-	SECTION 3. IC 24-4.5-2-202, AS AMENDED BY P.L.69-2018,
77		-	SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
78		-	JULY 1, 2022]: Sec. 202. (1) In addition to the credit service charge
79		-	permitted by this chapter, a seller may contract for and receive any of
80		-	SEA 383 3
81		-	the following additional charges in connection with a consumer credit
82		-	sale:
83		-	(a) Official fees and taxes.
84		-	(b) Charges for insurance as described in subsection (2).
85		-	(c) Notwithstanding provisions of the Consumer Credit Protection
86		-	Act (15 U.S.C. 1601 et seq.) concerning disclosure, charges for
87		-	other benefits, including insurance, conferred on the consumer, if
88		-	the benefits are of value to the consumer and if the charges are
89		-	reasonable in relation to the benefits, and are excluded as
90		-	permissible additional charges from the credit service charge.
91		-	With respect to any additional charge not specifically provided for
92		-	in this section, to be a permitted charge under this subsection the
93		-	seller must submit a written explanation of the charge to the
94		-	department indicating how the charge would be assessed and the
95		-	value or benefit to the consumer. Supporting documents may be
96		-	required by the department. The department shall determine
97		-	whether the charge would be of benefit to the consumer and is
98		-	reasonable in relation to the benefits.
99		-	(d) A charge not to exceed twenty-five dollars ($25) for each
100		-	returned payment by a bank or other depository institution of a
101		-	dishonored check, electronic funds transfer, negotiable order of
102		-	withdrawal, or share draft issued by the consumer.
103		-	(e) Annual participation fees assessed in connection with a
104		-	revolving charge account. Annual participation fees must:
105		-	(i) be reasonable in amount;
106		-	(ii) bear a reasonable relationship to the seller's costs to
107		-	maintain and monitor the charge account; and
108		-	(iii) not be assessed for the purpose of circumvention or
109		-	evasion of this article, as determined by the department.
110		-	(f) A charge not to exceed twenty-five dollars ($25) for a
111		-	skip-a-payment service, subject to the following:
112		-	(i) At the time of use of the service, the consumer must be
113		-	given written notice of the amount of the charge and must
114		-	acknowledge the amount in writing, including by electronic
115		-	signature.
116		-	(ii) A charge for a skip-a-payment service may not be assessed
117		-	with respect to a consumer credit sale subject to the provisions
118		-	on rebate upon prepayment that are set forth in section 210 of
119		-	this chapter.
120		-	(iii) A charge for a skip-a-payment service may not be
121		-	assessed with respect to any payment for which a delinquency
122		-	charge has been assessed under section 203.5 of this chapter.
123		-	SEA 383 4
124		-	(g) A charge not to exceed ten dollars ($10) for an optional
125		-	expedited payment service, subject to the following:
126		-	(i) The charge may be assessed only upon request by the
127		-	consumer to use the expedited payment service.
128		-	(ii) The amount of the charge must be disclosed to the
129		-	consumer at the time of the consumer's request to use the
130		-	expedited payment service.
131		-	(iii) The consumer must be informed that the consumer retains
132		-	the option to make a payment by traditional means.
133		-	(iv) The charge may not be established in advance, through
134		-	any agreement with the consumer, as the expected method of
135		-	payment.
136		-	(v) The charge may not be assessed with respect to any
137		-	payment for which a delinquency charge has been assessed
138		-	under section 203.5 of this chapter.
139		-	(h) A charge for a GAP agreement, subject to subsection (4).
140		-	(2) An additional charge may be made for insurance written in
141		-	connection with the sale, other than insurance protecting the seller
142		-	against the consumer's default or other credit loss:
143		-	(a) with respect to insurance against loss of or damage to
144		-	property, or against liability, if the seller furnishes a clear and
145		-	specific statement in writing to the consumer, setting forth the
146		-	cost of the insurance if obtained from or through the seller and
147		-	stating that the consumer may choose the person, subject to the
148		-	seller's reasonable approval, through whom the insurance is to be
149		-	obtained; and
150		-	(b) with respect to consumer credit insurance providing life,
151		-	accident, unemployment or other loss of income, or health
152		-	coverage, if the insurance coverage is not a factor in the approval
153		-	by the seller of the extension of credit and is clearly disclosed in
154		-	writing to the consumer, and if, in order to obtain the insurance in
155		-	connection with the extension of credit, the consumer gives
156		-	specific, affirmative, written indication of the desire to do so after
157		-	written disclosure of the cost.
158		-	(3) With respect to a subordinate lien mortgage transaction, the
159		-	following closing costs, if the costs are bona fide, reasonable in
160		-	amount, and not for the purpose of circumvention or evasion of this
161		-	article:
162		-	(a) fees for title examination, abstract of title, title insurance,
163		-	property surveys, or similar purposes;
164		-	(b) fees for preparing deeds, mortgages, and reconveyance,
165		-	settlement, and similar documents;
166		-	SEA 383 5
167		-	(c) notary and credit report fees;
168		-	(d) amounts required to be paid into escrow or trustee accounts if
169		-	the amounts would not otherwise be included in the credit service
170		-	charge; and
171		-	(e) appraisal fees.
172		-	(4) An additional charge may be made for a GAP agreement, subject
173		-	to the following:
174		-	(a) A GAP agreement or GAP coverage may not be required by
175		-	the seller, and that fact must be disclosed in writing to the
176		-	consumer.
177		-	(b) The charge for the initial term of coverage under the GAP
178		-	agreement must be disclosed in writing to the consumer. The
179		-	charge may be disclosed on a unit-cost basis only in the case of
180		-	the following transactions:
181		-	(i) Revolving charge accounts.
182		-	(ii) Closed-end credit transactions, if the request for coverage
183		-	is made by mail or telephone.
184		-	(iii) Closed-end credit transactions, if the GAP agreement
185		-	limits the total amount of indebtedness eligible for coverage.
186		-	(c) If the term of coverage under the GAP agreement is less than
187		-	the term of the consumer credit sale, the term of coverage under
188		-	the GAP agreement must be disclosed in writing to the consumer.
189		-	(d) The consumer must sign or initial an affirmative written
190		-	request for coverage after receiving all required disclosures.
191		-	(e) The GAP agreement must include the following:
192		-	(i) In the case of GAP coverage for a new motor vehicle, the
193		-	manufacturer's suggested retail price (MSRP) for the motor
194		-	vehicle.
195		-	(ii) In the case of GAP coverage for a used motor vehicle, the
196		-	National Automobile Dealers Association (NADA) average
197		-	retail value for the motor vehicle, as determined by use of a
198		-	third party valuation service provider that is customarily
199		-	relied upon in the used motor vehicle commercial
200		-	marketplace.
201		-	(iii) The name of the financing entity taking assignment of the
202		-	agreement.
203		-	(iv) The name and address of the consumer.
204		-	(v) The name of the creditor selling the agreement.
205		-	(vi) Information advising the consumer that the consumer may
206		-	be able to obtain similar coverage from the consumer's primary
207		-	insurance carrier.
208		-	(vii) A coverage provision that includes a minimum deductible
209		-	SEA 383 6
210		-	of five hundred dollars ($500).
211		-	(viii) A provision providing for a minimum thirty (30) day
212		-	free-look period.
213		-	(ix) In the case of a consumer credit sale involving a motor
214		-	vehicle, a provision excluding the sale of GAP coverage if the
215		-	amount financed under the consumer credit sale (not including
216		-	the cost of the GAP agreement, the cost of any credit
217		-	insurance, and the cost of any warranties or service
218		-	agreements) is less than eighty percent (80%) of the
219		-	manufacturer's suggested retail price (MSRP), in the case of a
220		-	new motor vehicle, or the National Automobile Dealers
221		-	Association (NADA) average retail value (as determined by
222		-	use of a third party valuation service provider that is
223		-	customarily relied upon in the used motor vehicle
224		-	commercial marketplace), in the case of a used motor
225		-	vehicle.
226		-	(x) In the case of a GAP agreement in which the charge for the
227		-	agreement exceeds four hundred dollars ($400), specific
228		-	instructions that may be used by the consumer to cancel the
229		-	agreement and obtain a refund of the unearned GAP charge
230		-	before prepayment in full, in accordance with the procedures,
231		-	and subject to the conditions, set forth in subdivision (f).
232		-	(f) If the charge for the GAP agreement exceeds four hundred
233		-	dollars ($400), the consumer is entitled to cancel the agreement
234		-	and obtain a refund of the unearned GAP charge before
235		-	prepayment in full. Refunds of unearned GAP charges shall be
236		-	made subject to the following conditions:
237		-	(i) A refund of the charge for a GAP agreement must be
238		-	calculated using a method that is no less favorable to the
239		-	consumer than a refund calculated on a pro rata basis.
240		-	(ii) The consumer is entitled to a refund of the unearned GAP
241		-	agreement charge as outlined in the GAP agreement.
242		-	(iii) The seller of the GAP agreement is responsible for
243		-	making a timely refund to the consumer of unearned GAP
244		-	agreement charges under the terms and conditions of the GAP
245		-	agreement.
246		-	(g) Upon prepayment in full of the consumer credit sale:
247		-	(i) the GAP coverage is automatically terminated; and
248		-	(ii) the seller of the GAP agreement must issue a refund in
249		-	accordance with subdivision (f).
250		-	(h) A creditor that sells GAP agreements must:
251		-	(i) insure its GAP agreement obligations under a contractual
252		-	SEA 383 7
253		-	liability insurance policy issued by an insurer authorized to
254		-	engage in the insurance business in Indiana; and
255		-	(ii) retain appropriate records, as required under this article,
256		-	regarding GAP agreements sold, refunded, and expired.
257		-	(5) As used in this section, "expedited payment service" means a
258		-	service offered to a consumer to ensure that a payment made by the
259		-	consumer with respect to a consumer credit sale will be reflected as
260		-	paid and posted on an expedited basis.
261		-	(6) As used in this section:
262		-	(a) "guaranteed asset protection agreement";
263		-	(b) "guaranteed auto protection agreement"; or
264		-	(c) "GAP agreement";
265		-	means, with respect to consumer credit sales involving motor vehicles
266		-	or other titled assets, an agreement in which the seller agrees to cancel
267		-	or waive all or part of the outstanding debt after all property insurance
268		-	benefits have been exhausted after the occurrence of a specified event.
269		-	(7) As used in this section, "skip-a-payment service" means a
270		-	service that:
271		-	(a) is offered by a creditor to a consumer; and
272		-	(b) permits the consumer to miss or skip a payment due under a
273		-	consumer credit sale without resulting in default.
274		-	SECTION 4. IC 24-4.5-3-201, AS AMENDED BY P.L.85-2020,
275		-	SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
276		-	UPON PASSAGE]: Sec. 201. Loan Finance Charge for Consumer
277		-	Loans other than Supervised Loans—(1) This section does not apply
278		-	to a supervised loan (as defined in section 501 of this chapter).
279		-	Except as provided in subsections (7) and (9), with respect to a
280		-	consumer loan, other than a supervised loan (as defined in section 501
281		-	of this chapter), a lender may contract for a loan finance charge,
282		-	calculated according to the actuarial method, not exceeding twenty-five
283		-	percent (25%) per year on the unpaid balances of the principal (as
284		-	defined in section 107(3) of this chapter).
285		-	(2) In the case of a loan agreement entered into before July 1, 2020,
286		-	this section does not limit or restrict the manner of contracting for the
287		-	loan finance charge, whether by way of add-on, discount, or otherwise,
288		-	so long as the rate of the loan finance charge does not exceed that
289		-	permitted by this section. If the loan is precomputed:
290		-	(a) the loan finance charge may be calculated on the assumption
291		-	that all scheduled payments will be made when due; and
292		-	(b) the effect of prepayment is governed by the provisions on
293		-	rebate upon prepayment in section 210 of this chapter.
294		-	(3) The following apply to a loan agreement for a consumer loan (or
295		-	SEA 383 8
296		-	for the refinancing or consolidation of a consumer loan) that is entered
297		-	into after June 30, 2020:
298		-	(a) The consumer loan is subject to this section, including the
299		-	limitations set forth in:
300		-	(i) subsection (1) with respect to the loan finance charge; and
301		-	(ii) subsection (9)(b) with respect to the amount of the
302		-	authorized nonrefundable prepaid finance charge, in the case
303		-	of a consumer loan that is not secured by an interest in land.
304		-	(b) The loan finance charge authorized by this section must be:
305		-	(i) contracted for between the lender and the debtor; and
306		-	(ii) calculated by applying a rate not exceeding the rate set
307		-	forth in subsection (1) to unpaid balances of the principal (as
308		-	defined in section 107(3) of this chapter).
309		-	(c) A loan agreement for a precomputed consumer loan is
310		-	prohibited.
311		-	(d) Subject to subsection (12), in addition to the loan finance
312		-	charge authorized by subsection (1) and to any other fees
313		-	permitted by this chapter, and not subject to the twenty-five
314		-	percent (25%) rate set forth in subsection (1), the lender may
315		-	contract for and receive as a condition for, or an incident to, the
316		-	extension of credit a nonrefundable prepaid finance charge under
317		-	subsection (9), whether the charge is:
318		-	(i) paid separately in cash or by check before or at
319		-	consummation; or
320		-	(ii) withheld from the proceeds of the consumer loan.
321		-	(4) For the purposes of this section, the term of a loan commences
322		-	with the date the loan is made. Differences in the lengths of months are
323		-	disregarded, and a day may be counted as one-thirtieth (1/30) of a
324		-	month. Subject to classifications and differentiations the lender may
325		-	reasonably establish, a part of a month in excess of fifteen (15) days
326		-	may be treated as a full month if periods of fifteen (15) days or less are
327		-	disregarded and if that procedure is not consistently used to obtain a
328		-	greater yield than would otherwise be permitted. For purposes of
329		-	computing average daily balances, the creditor may elect to treat all
330		-	months as consisting of thirty (30) days.
331		-	(5) With respect to a consumer loan made pursuant to a revolving
332		-	loan account:
333		-	(a) the loan finance charge shall be deemed not to exceed the
334		-	maximum annual percentage rate if the loan finance charge
335		-	contracted for and received does not exceed a charge in each
336		-	monthly billing cycle which is two and eighty-three thousandths
337		-	percent (2.083%) of an amount not greater than:
338		-	SEA 383 9
339		-	(i) the average daily balance of the debt;
340		-	(ii) the unpaid balance of the debt on the same day of the
341		-	billing cycle; or
342		-	(iii) subject to subsection (6), the median amount within a
343		-	specified range within which the average daily balance or the
344		-	unpaid balance of the debt, on the same day of the billing
345		-	cycle, is included; for the purposes of this clause and clause
346		-	(ii), a variation of not more than four (4) days from month to
347		-	month is "the same day of the billing cycle";
348		-	(b) if the billing cycle is not monthly, the loan finance charge
349		-	shall be deemed not to exceed the maximum annual percentage
350		-	rate if the loan finance charge contracted for and received does
351		-	not exceed a percentage which bears the same relation to
352		-	one-twelfth (1/12) the maximum annual percentage rate as the
353		-	number of days in the billing cycle bears to thirty (30); and
354		-	(c) notwithstanding subsection (1), if there is an unpaid balance
355		-	on the date as of which the loan finance charge is applied, the
356		-	lender may contract for and receive a charge not exceeding fifty
357		-	cents ($0.50) if the billing cycle is monthly or longer, or the pro
358		-	rata part of fifty cents ($0.50) which bears the same relation to
359		-	fifty cents ($0.50) as the number of days in the billing cycle bears
360		-	to thirty (30) if the billing cycle is shorter than monthly, but no
361		-	charge may be made pursuant to this subdivision if the lender has
362		-	made an annual charge for the same period as permitted by the
363		-	provisions on additional charges in section 202(1)(c) of this
364		-	chapter.
365		-	(6) Subject to classifications and differentiations the lender may
366		-	reasonably establish, the lender may make the same loan finance
367		-	charge on all amounts financed within a specified range. A loan finance
368		-	charge does not violate subsection (1) if:
369		-	(a) when applied to the median amount within each range, it does
370		-	not exceed the maximum permitted by subsection (1); and
371		-	(b) when applied to the lowest amount within each range, it does
372		-	not produce a rate of loan finance charge exceeding the rate
373		-	calculated according to subdivision (a) by more than eight percent
374		-	(8%) of the rate calculated according to subdivision (a).
375		-	(7) With respect to a consumer loan not made pursuant to a
376		-	revolving loan account, the lender may contract for and receive a
377		-	minimum loan finance charge of not more than thirty dollars ($30). The
378		-	minimum loan finance charge allowed under this subsection may be
379		-	imposed only if the lender does not contract for or receive a
380		-	nonrefundable prepaid finance charge under subsection (9) and:
381		-	SEA 383 10
382		-	(a) the debtor prepays in full a consumer loan, refinancing, or
383		-	consolidation, regardless of whether the loan, refinancing, or
384		-	consolidation is precomputed;
385		-	(b) the loan, refinancing, or consolidation prepaid by the debtor
386		-	is subject to a loan finance charge that:
387		-	(i) is contracted for by the parties; and
388		-	(ii) does not exceed the rate prescribed in subsection (1); and
389		-	(c) the loan finance charge earned at the time of prepayment is
390		-	less than the minimum loan finance charge contracted for under
391		-	this subsection.
392		-	(8) The amount of thirty dollars ($30) in subsection (7) is subject to
393		-	change under the provisions on adjustment of dollar amounts
394		-	(IC 24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), the
395		-	Reference Base Index to be used under this subsection is the Index for
396		-	October 1992.
397		-	(9) Except as provided in subsection (7), and subject to subsection
398		-	(12), in addition to the loan finance charge authorized by subsection (1)
399		-	and to any other charges and fees permitted by this chapter, a lender
400		-	may contract for and receive a nonrefundable prepaid finance charge
401		-	of not more than the following:
402		-	(a) In the case of a consumer loan that is secured by an interest in
403		-	land and that:
404		-	(i) is not made under a revolving loan account, two percent
405		-	(2%) of the loan amount; or
406		-	(ii) is made under a revolving loan account, two percent (2%)
407		-	of the line of credit.
408		-	(b) In the case of consumer loan that is not secured by an interest
409		-	in land, fifty dollars ($50) if the loan agreement is entered into
410		-	before July 1, 2020. If the loan agreement is entered into after
411		-	June 30, 2020, not more than the following:
412		-	(i) Seventy-five dollars ($75), in the case of a loan agreement
413		-	for a principal amount which is two thousand dollars ($2,000)
414		-	or less.
415		-	(ii) One hundred fifty dollars ($150) in the case of a loan
416		-	agreement for a principal amount which is more than two
417		-	thousand dollars ($2,000) but does not exceed four thousand
418		-	dollars ($4,000).
419		-	(iii) Two hundred dollars ($200) in the case of a loan
420		-	agreement for a principal amount which is more than four
421		-	thousand dollars ($4,000).
422		-	The amounts in this subsection are not subject to change under
423		-	IC 24-4.5-1-106.
424		-	SEA 383 11
425		-	(10) The nonrefundable prepaid finance charge provided for in
426		-	subsection (9) is not subject to refund or rebate. However, for any loan
427		-	entered into after June 30, 2020, any amount charged by the lender,
428		-	other than by a lender that is a depository institution (as defined in
429		-	IC 24-4.5-1-301.5(12)), under subsection (9) that exceeds the
430		-	applicable amount permitted by subsection (9)(b) constitutes a
431		-	violation of this article under IC 24-4.5-6-107.5(l) and is subject to
432		-	refund. Any amount charged by a depository institution (as defined in
433		-	IC 24-4.5-1-301.5(12)) under subsection (9) that exceeds the applicable
434		-	amount set forth in subsection (9)(b) is subject to refund.
435		-	(11) If the director determines that a lender's accrual method of
436		-	accounting as applied to a consumer loan under this section involves
437		-	the application of subterfuge for the purpose of circumventing this
438		-	chapter, the director may conform the loan finance charge and fees for
439		-	the transaction to the limitations set forth in this section and may
440		-	require a refund of overcharges under IC 24-4.5-6-106(2)(a). A
441		-	determination by the director under this subsection:
442		-	(a) must be in writing;
443		-	(b) shall be delivered to all parties in the transaction; and
444		-	(c) is subject to IC 4-21.5-3.
445		-	(12) At the time of consummation of a consumer loan:
446		-	(a) the loan finance charge authorized by subsection (1); and
447		-	(b) the nonrefundable prepaid finance charge authorized by
448		-	subsection (9) (including any amount charged by a depository
449		-	institution (as defined in IC 24-4.5-1-301.5(12)) that exceeds the
450		-	applicable amount set forth in subsection (9)(b));
451		-	are subject to IC 35-45-7 and, when combined, may not exceed the rate
452		-	set forth in IC 35-45-7-2.
453		-	(13) Notwithstanding subsections (9) and (10), in the case of a
454		-	consumer loan that is not secured by an interest in land, if a lender
455		-	retains any part of a nonrefundable prepaid finance charge charged on
456		-	a loan that is paid in full by a new loan from the same lender, the
457		-	following apply:
458		-	(a) If the loan is paid in full by the new loan within three (3)
459		-	months after the date of the prior loan, the lender may not charge
460		-	a nonrefundable prepaid finance charge on the new loan, or, in the
461		-	case of a revolving loan, on the increased credit line.
462		-	(b) The lender may not assess more than two (2) nonrefundable
463		-	prepaid finance charges in any twelve (12) month period.
464		-	(c) Subject to subdivisions (a) and (b), if a loan that is entered
465		-	into by a lender and a debtor before July 1, 2020, is paid in full by
466		-	a new loan from the same lender after June 30, 2020, the lender
467		-	SEA 383 12
468		-	may contract for and receive a nonrefundable prepaid finance
469		-	charge in the amount set forth in subsection (9)(b) for loan
470		-	agreements entered into after June 30, 2020.
471		-	(14) In the case of a consumer loan that is secured by an interest in
472		-	land, this section does not prohibit a lender from contracting for and
473		-	receiving a fee for preparing deeds, mortgages, reconveyances, and
474		-	similar documents under section 202(1)(d)(ii) of this chapter, in
475		-	addition to the nonrefundable prepaid finance charge provided for in
476		-	subsection (9).
477		-	SECTION 5. IC 24-4.5-3-202, AS AMENDED BY P.L.280-2019,
478		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
479		-	JULY 1, 2022]: Sec. 202. (1) In addition to the loan finance charge
480		-	permitted by this chapter, a lender may contract for and receive the
481		-	following additional charges in connection with a consumer loan:
482		-	(a) Official fees and taxes.
483		-	(b) Charges for insurance as described in subsection (2).
484		-	(c) Annual participation fees assessed in connection with a
485		-	revolving loan account. Annual participation fees must:
486		-	(i) be reasonable in amount;
487		-	(ii) bear a reasonable relationship to the lender's costs to
488		-	maintain and monitor the loan account; and
489		-	(iii) not be assessed for the purpose of circumvention or
490		-	evasion of this article, as determined by the department.
491		-	(d) With respect to a debt secured by an interest in land, the
492		-	following closing costs, if they are bona fide, reasonable in
493		-	amount, and not for the purpose of circumvention or evasion of
494		-	this article:
495		-	(i) Fees for title examination, abstract of title, title insurance,
496		-	property surveys, or similar purposes.
497		-	(ii) Fees for preparing deeds, mortgages, and reconveyance,
498		-	settlement, and similar documents.
499		-	(iii) Notary and credit report fees.
500		-	(iv) Amounts required to be paid into escrow or trustee
501		-	accounts if the amounts would not otherwise be included in
502		-	the loan finance charge.
503		-	(v) Appraisal fees.
504		-	(e) Notwithstanding provisions of the Consumer Credit Protection
505		-	Act (15 U.S.C. 1601 et seq.) concerning disclosure, charges for
506		-	other benefits, including insurance, conferred on the debtor, if the
507		-	benefits are of value to the debtor and if the charges are
508		-	reasonable in relation to the benefits, and are excluded as
509		-	permissible additional charges from the loan finance charge. With
510		-	SEA 383 13
511		-	respect to any other additional charge not specifically provided
512		-	for in this section to be a permitted charge under this subsection,
513		-	the creditor must submit a written explanation of the charge to the
514		-	department indicating how the charge would be assessed and the
515		-	value or benefit to the debtor. Supporting documents may be
516		-	required by the department. The department shall determine
517		-	whether the charge would be of benefit to the debtor and is
518		-	reasonable in relation to the benefits.
519		-	(f) A charge not to exceed twenty-five dollars ($25) for each
520		-	returned payment by a bank or other depository institution of a
521		-	dishonored check, electronic funds transfer, negotiable order of
522		-	withdrawal, or share draft issued by the debtor.
523		-	(g) With respect to a revolving loan account, a fee not to exceed
524		-	twenty-five dollars ($25) in each billing cycle during which the
525		-	balance due under the revolving loan account exceeds by more
526		-	than one hundred dollars ($100) the maximum credit limit for the
527		-	account established by the lender.
528		-	(h) With respect to a revolving loan account, a transaction fee that
529		-	may not exceed the greater of the following:
530		-	(i) Two percent (2%) of the amount of the transaction.
531		-	(ii) Ten dollars ($10).
532		-	(i) A charge not to exceed twenty-five dollars ($25) for a
533		-	skip-a-payment service, subject to the following:
534		-	(i) At the time of use of the service, the consumer must be
535		-	given written notice of the amount of the charge and must
536		-	acknowledge the amount in writing, including by electronic
537		-	signature.
538		-	(ii) A charge for a skip-a-payment service may not be assessed
539		-	with respect to a consumer loan subject to the provisions on
540		-	rebate upon prepayment that are set forth in section 210 of this
541		-	chapter.
542		-	(iii) A charge for a skip-a-payment service may not be
543		-	assessed with respect to any payment for which a delinquency
544		-	charge has been assessed under section 203.5 of this chapter.
545		-	(j) A charge not to exceed ten dollars ($10) for an optional
546		-	expedited payment service, subject to the following:
547		-	(i) The charge may be assessed only upon request by the
548		-	consumer to use the expedited payment service.
549		-	(ii) The amount of the charge must be disclosed to the
550		-	consumer at the time of the consumer's request to use the
551		-	expedited payment service.
552		-	(iii) The consumer must be informed that the consumer retains
553		-	SEA 383 14
554		-	the option to make a payment by traditional means.
555		-	(iv) The charge may not be established in advance, through
556		-	any agreement with the consumer, as the expected method of
557		-	payment.
558		-	(v) The charge may not be assessed with respect to any
559		-	payment for which a delinquency charge has been assessed
560		-	under section 203.5 of this chapter.
561		-	(k) A charge for a GAP agreement, subject to subsection (3).
562		-	(l) With respect to consumer loans made by a person exempt from
563		-	licensing under IC 24-4.5-3-502(1), a charge for a debt
564		-	cancellation agreement, subject to the following:
565		-	(i) A debt cancellation agreement or debt cancellation
566		-	coverage may not be required by the lender, and that fact must
567		-	be disclosed in writing to the consumer.
568		-	(ii) The charge for the initial term of coverage under the debt
569		-	cancellation agreement must be disclosed in writing to the
570		-	consumer. The charge may be disclosed on a unit-cost basis
571		-	only in the case of revolving loan accounts, closed-end credit
572		-	transactions if the request for coverage is made by mail or
573		-	telephone, and closed-end credit transactions if the debt
574		-	cancellation agreement limits the total amount of indebtedness
575		-	eligible for coverage.
576		-	(iii) If the term of coverage under the debt cancellation
577		-	agreement is less than the term of the consumer loan, the term
578		-	of coverage under the debt cancellation agreement must be
579		-	disclosed in writing to the consumer.
580		-	(iv) The consumer must sign or initial an affirmative written
581		-	request for coverage after receiving all required disclosures.
582		-	(v) If debt cancellation coverage for two (2) or more events is
583		-	provided for in a single charge under a debt cancellation
584		-	agreement, the entire charge may be excluded from the loan
585		-	finance charge and imposed as an additional charge under this
586		-	section if at least one (1) of the events is the loss of life, health,
587		-	or income.
588		-	The additional charges provided for in subdivisions (f) through (j) are
589		-	not subject to refund or rebate.
590		-	(2) An additional charge may be made for insurance in connection
591		-	with the loan, other than insurance protecting the lender against the
592		-	debtor's default or other credit loss:
593		-	(a) with respect to insurance against loss of or damage to property
594		-	or against liability, if the lender furnishes a clear and specific
595		-	statement in writing to the debtor, setting forth the cost of the
596		-	SEA 383 15
597		-	insurance if obtained from or through the lender and stating that
598		-	the debtor may choose the person, subject to the lender's
599		-	reasonable approval, through whom the insurance is to be
600		-	obtained; and
601		-	(b) with respect to consumer credit insurance providing life,
602		-	accident, unemployment or other loss of income, or health
603		-	coverage, if the insurance coverage is not a factor in the approval
604		-	by the lender of the extension of credit and this fact is clearly
605		-	disclosed in writing to the debtor, and if, in order to obtain the
606		-	insurance in connection with the extension of credit, the debtor
607		-	gives specific affirmative written indication of the desire to do so
608		-	after written disclosure of the cost of the insurance.
609		-	(3) An additional charge may be made for a GAP agreement, subject
610		-	to the following:
611		-	(a) A GAP agreement or GAP coverage may not be required by
612		-	the lender, and that fact must be disclosed in writing to the
613		-	consumer.
614		-	(b) The charge for the initial term of coverage under the GAP
615		-	agreement must be disclosed in writing to the consumer. The
616		-	charge may be disclosed on a unit-cost basis only in the case of
617		-	the following transactions:
618		-	(i) Revolving loan accounts.
619		-	(ii) Closed-end credit transactions, if the request for coverage
620		-	is made by mail or telephone.
621		-	(iii) Closed-end credit transactions, if the GAP agreement
622		-	limits the total amount of indebtedness eligible for coverage.
623		-	(c) If the term of coverage under the GAP agreement is less than
624		-	the term of the consumer loan, the term of coverage under the
625		-	GAP agreement must be disclosed in writing to the consumer.
626		-	(d) The consumer must sign or initial an affirmative written
627		-	request for coverage after receiving all required disclosures.
628		-	(e) The GAP agreement must include the following:
629		-	(i) In the case of GAP coverage for a new motor vehicle, the
630		-	manufacturer's suggested retail price (MSRP) for the motor
631		-	vehicle.
632		-	(ii) In the case of GAP coverage for a used motor vehicle, the
633		-	National Automobile Dealers Association (NADA) average
634		-	retail value for the motor vehicle, as determined by use of a
635		-	third party valuation service provider that is customarily
636		-	relied upon in the used motor vehicle commercial
637		-	marketplace.
638		-	(iii) The name of the financing entity taking assignment of the
639		-	SEA 383 16
640		-	agreement, as applicable.
641		-	(iv) The name and address of the consumer.
642		-	(v) The name of the lender selling the agreement.
643		-	(vi) Information advising the consumer that the consumer may
644		-	be able to obtain similar coverage from the consumer's primary
645		-	insurance carrier.
646		-	(vii) A coverage provision that includes a minimum deductible
647		-	of five hundred dollars ($500).
648		-	(viii) A provision providing for a minimum thirty (30) day trial
649		-	period.
650		-	(ix) In the case of a consumer loan made with respect to a
651		-	motor vehicle, a provision excluding the sale of GAP coverage
652		-	if the amount financed under the consumer loan (not including
653		-	the cost of the GAP agreement, the cost of any credit
654		-	insurance, and the cost of any warranties or service
655		-	agreements) is less than eighty percent (80%) of the
656		-	manufacturer's suggested retail price (MSRP), in the case of a
657		-	new motor vehicle, or of the National Automobile Dealers
658		-	Association (NADA) average retail value (as determined by
659		-	use of a third party valuation service provider that is
660		-	customarily relied upon in the used motor vehicle
661		-	commercial marketplace), in the case of a used motor
662		-	vehicle.
663		-	(x) In the case of a GAP agreement in which the charge for the
664		-	agreement exceeds four hundred dollars ($400), specific
665		-	instructions that may be used by the consumer to cancel the
666		-	agreement and obtain a refund of the unearned GAP charge
667		-	before prepayment in full, in accordance with the procedures,
668		-	and subject to the conditions, set forth in subdivision (f).
669		-	(f) If the charge for the GAP agreement exceeds four hundred
670		-	dollars ($400), the consumer is entitled to cancel the agreement
671		-	and obtain a refund of the unearned GAP charge before
672		-	prepayment in full. Refunds of unearned GAP charges shall be
673		-	made subject to the following conditions:
674		-	(i) A refund of the charge for a GAP agreement must be
675		-	calculated using a method that is no less favorable to the
676		-	consumer than a refund calculated on a pro rata basis.
677		-	(ii) The consumer is entitled to a refund of the unearned GAP
678		-	agreement charge as outlined in the GAP agreement.
679		-	(iii) The seller of the GAP agreement, or the seller's assignee,
680		-	is responsible for making a timely refund to the consumer of
681		-	unearned GAP agreement charges under the terms and
682		-	SEA 383 17
683		-	conditions of the GAP agreement.
684		-	(g) Upon prepayment in full of the consumer loan:
685		-	(i) the GAP coverage is automatically terminated; and
686		-	(ii) the seller of the GAP agreement must issue a refund in
687		-	accordance with subdivision (f).
688		-	(h) A lender that sells GAP agreements must:
689		-	(i) insure its GAP agreement obligations under a contractual
690		-	liability insurance policy issued by an insurer authorized to
691		-	engage in the insurance business in Indiana; and
692		-	(ii) retain appropriate records, as required under this article,
693		-	regarding GAP agreements sold, refunded, and expired.
694		-	(4) As used in this section, "debt cancellation agreement" means an
695		-	agreement that provides coverage for payment or satisfaction of all or
696		-	part of a debt in the event of the loss of life, health, or income. The
697		-	term does not include a GAP agreement.
698		-	(5) As used in this section, "expedited payment service" means a
699		-	service offered to a consumer to ensure that a payment made by the
700		-	consumer with respect to a consumer loan will be reflected as paid and
701		-	posted on an expedited basis.
702		-	(6) As used in this section:
703		-	(a) "guaranteed asset protection agreement";
704		-	(b) "guaranteed auto protection agreement"; or
705		-	(c) "GAP agreement";
706		-	means, with respect to consumer loans involving motor vehicles or
707		-	other titled assets, an agreement in which the lender agrees to cancel
708		-	or waive all or part of the outstanding debt after all property insurance
709		-	benefits have been exhausted after the occurrence of a specified event.
710		-	(7) As used in this section, "skip-a-payment service" means a
711		-	service that:
712		-	(a) is offered by a lender to a consumer; and
713		-	(b) permits the consumer to miss or skip a payment due under a
714		-	consumer loan without resulting in default.
715		-	SECTION 6. IC 24-4.5-3-508, AS AMENDED BY P.L.85-2020,
716		-	SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
717		-	UPON PASSAGE]: Sec. 508. Loan Finance Charge for Supervised
718		-	Loans ) (1) With respect to a supervised loan, including a loan
719		-	pursuant to a revolving loan account, a supervised lender may contract
720		-	for and receive a loan finance charge not exceeding that permitted by
721		-	this section.
722		-	(2) The loan finance charge, calculated according to the actuarial
723		-	method, may not exceed the equivalent of the greater of:
724		-	(a) the total of:
725		-	SEA 383 18
726		-	(i) thirty-six percent (36%) per year on that part of the unpaid
727		-	balances of the principal (as defined in section 107(3) of this
728		-	chapter) which is two thousand dollars ($2,000) or less;
729		-	(ii) twenty-one percent (21%) per year on that part of the
730		-	unpaid balances of the principal (as defined in section 107(3)
731		-	of this chapter) which is more than two thousand dollars
732		-	($2,000) but does not exceed four thousand dollars ($4,000);
733		-	and
734		-	(iii) fifteen percent (15%) per year on that part of the unpaid
735		-	balances of the principal (as defined in section 107(3) of this
736		-	chapter) which is more than four thousand dollars ($4,000); or
737		-	(b) twenty-five percent (25%) per year on the unpaid balances of
738		-	the principal (as defined in section 107(3) of this chapter).
739		-	(3) In the case of a loan agreement entered into before July 1, 2020,
740		-	this section does not limit or restrict the manner of contracting for the
741		-	loan finance charge, whether by way of add-on, discount, or otherwise,
742		-	so long as the rate of the loan finance charge does not exceed that
743		-	permitted by this section. If the loan is precomputed:
744		-	(a) the loan finance charge may be calculated on the assumption
745		-	that all scheduled payments will be made when due; and
746		-	(b) the effect of prepayment is governed by the provisions on
747		-	rebate upon prepayment in section 210 of this chapter.
748		-	After June 30, 2020, a loan agreement may not be entered into for a
749		-	precomputed supervised loan. The loan finance charge authorized by
750		-	this section must be contracted for between the lender and the
751		-	debtor, and must be calculated by applying a rate not exceeding the
752		-	rate set forth in subsection (2) to unpaid balances of the principal
753		-	(as defined in section 107(3) of this chapter).
754		-	(4) The term of a loan for the purposes of this section commences
755		-	on the date the loan is made. Differences in the lengths of months are
756		-	disregarded, and a day may be counted as one-thirtieth (1/30) of a
757		-	month. Subject to classifications and differentiations the lender may
758		-	reasonably establish, a part of a month in excess of fifteen (15) days
759		-	may be treated as a full month if periods of fifteen (15) days or less are
760		-	disregarded and that procedure is not consistently used to obtain a
761		-	greater yield than would otherwise be permitted.
762		-	(5) Subject to classifications and differentiations the lender may
763		-	reasonably establish, the lender may make the same loan finance
764		-	charge on all principal amounts within a specified range. A loan
765		-	finance charge does not violate subsection (2) if:
766		-	(a) when applied to the median amount within each range, it does
767		-	not exceed the maximum permitted in subsection (2); and
768		-	SEA 383 19
769		-	(b) when applied to the lowest amount within each range, it does
770		-	not produce a rate of loan finance charge exceeding the rate
771		-	calculated according to subdivision (a) by more than eight percent
772		-	(8%) of the rate calculated according to subdivision (a).
773		-	(6) The amounts of two thousand dollars ($2,000) and four thousand
774		-	dollars ($4,000) in subsection (2) and thirty dollars ($30) in subsection
775		-	(7) are subject to change pursuant to the provisions on adjustment of
776		-	dollar amounts (IC 24-4.5-1-106). However, notwithstanding
777		-	IC 24-4.5-1-106(1), for the adjustment of the amount of thirty dollars
778		-	($30), the Reference Base Index to be used is the Index for October
779		-	1992. Notwithstanding IC 24-4.5-1-106(1), for the adjustment of the
780		-	amounts of two thousand dollars ($2,000) and four thousand dollars
781		-	($4,000), the Reference Base Index to be used is the Index for October
782		-	2012.
783		-	(7) With respect to a supervised loan not made pursuant to a
784		-	revolving loan account, the lender may contract for and receive a
785		-	minimum loan finance charge of not more than thirty dollars ($30). The
786		-	minimum loan finance charge allowed under this subsection may be
787		-	imposed only if the lender does not assess a nonrefundable prepaid
788		-	finance charge under subsection (8) and:
789		-	(a) the debtor prepays in full a consumer loan, refinancing, or
790		-	consolidation, regardless of whether the loan, refinancing, or
791		-	consolidation is precomputed;
792		-	(b) the loan, refinancing, or consolidation prepaid by the debtor
793		-	is subject to a loan finance charge that:
794		-	(i) is contracted for by the parties; and
795		-	(ii) does not exceed the rate prescribed in subsection (2); and
796		-	(c) the loan finance charge earned at the time of prepayment is
797		-	less than the minimum loan finance charge contracted for under
798		-	this subsection.
799		-	(8) Except as provided in subsections (7) and (10)(c), in addition to
800		-	the loan finance charge provided for in this section and to any other
801		-	charges and fees permitted by this chapter, the lender may contract for
802		-	and receive a nonrefundable prepaid finance charge of not more than
803		-	fifty dollars ($50) if the loan agreement is entered into before July 1,
804		-	2020. If the loan agreement is entered into after June 30, 2020, not
805		-	more than the following:
806		-	(a) Seventy-five dollars ($75), in the case of a loan agreement for
807		-	a principal amount which is two thousand dollars ($2,000) or less.
808		-	(b) One hundred fifty dollars ($150) in the case of a loan
809		-	agreement for a principal amount which is more than two
810		-	thousand dollars ($2,000) but does not exceed four thousand
811		-	SEA 383 20
812		-	dollars ($4,000).
813		-	(c) Two hundred dollars ($200) in the case of a loan agreement
814		-	for a principal amount which is more than four thousand dollars
815		-	($4,000).
816		-	The amounts in this subsection are not subject to change under
817		-	IC 24-4.5-1-106.
818		-	(9) The nonrefundable prepaid finance charge provided for in
819		-	subsection (8) is not subject to refund or rebate. However, for any
820		-	supervised loan entered into after June 30, 2020, any amount charged
821		-	by the lender, other than by a lender that is a depository institution (as
822		-	defined in IC 24-4.5-1-301.5(12)), under subsection (8) that exceeds
823		-	the applicable amount permitted by subsection (8) constitutes a
824		-	violation of this article under IC 24-4.5-6-107.5(l) and is subject to
825		-	refund. Any amount charged by a depository institution (as defined in
826		-	IC 24-4.5-1-301.5(12)) under subsection (8) that exceeds the applicable
827		-	amount set forth in subsection (8) is subject to refund.
828		-	(10) Notwithstanding subsections (8) and (9), in the case of a
829		-	supervised loan that is not secured by an interest in land, if a lender
830		-	retains any part of a nonrefundable prepaid finance charge charged on
831		-	a loan that is paid in full by a new loan from the same lender, the
832		-	following apply:
833		-	(a) If the loan is paid in full by the new loan within three (3)
834		-	months after the date of the prior loan, the lender may not charge
835		-	a nonrefundable prepaid finance charge on the new loan, or, in the
836		-	case of a revolving loan, on the increased credit line.
837		-	(b) The lender may not assess more than two (2) nonrefundable
838		-	prepaid finance charges in any twelve (12) month period.
839		-	(c) Subject to subdivisions (a) and (b), if a supervised loan that is
840		-	entered into by a lender and a debtor before July 1, 2020, is paid
841		-	in full by a new loan from the same lender after June 30, 2020, the
842		-	lender may contract for and receive a nonrefundable prepaid
843		-	finance charge in the amount set forth in subsection (8) for loan
844		-	agreements entered into after June 30, 2020.
845		-	(11) In the case of a supervised loan that is secured by an interest in
846		-	land, this section does not prohibit a lender from contracting for and
847		-	receiving a fee for preparing deeds, mortgages, reconveyances, and
848		-	similar documents under section 202(1)(d)(ii) of this chapter, in
849		-	addition to the nonrefundable prepaid finance charge provided for in
850		-	subsection (8).
851		-	SECTION 7. IC 24-7-3-3, AS AMENDED BY P.L.69-2018,
852		-	SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
853		-	JULY 1, 2022]: Sec. 3. The lessor shall disclose the following:
854		-	SEA 383 21
855		-	(1) A brief description of the property sufficient to identify the
856		-	property to the lessee and lessor.
857		-	(2) The total number, total amount, and timing of all rental
858		-	payments necessary to acquire ownership of the property,
859		-	including:
860		-	(A) any initial payment, less any:
861		-	(i) optional liability waiver fees under IC 24-7-5-11; and
862		-	(ii) optional products and services offered
863		-	contemporaneously with the rental purchase agreement
864		-	under IC 24-7-8-6; and
865		-	(iii) security deposit, if required;
866		-	(B) all regular rental payments; and
867		-	(C) taxes paid to or through the lessor.
868		-	(3) A statement that the lessee will not own the property until the
869		-	lessee has:
870		-	(A) made all regular rental payments, as well as any initial
871		-	rental payment, necessary to acquire ownership of the
872		-	property; or
873		-	(B) exercised an early purchase option.
874		-	(4) A statement that charges in addition to the total rental
875		-	payments necessary to acquire ownership of the leased property
876		-	may be imposed under the agreement and that the lessee should
877		-	read the contract for an explanation of these charges.
878		-	(5) A brief explanation of all additional charges that may be
879		-	imposed under the agreement. If a security deposit is required, the
880		-	explanation must include an explanation of the conditions under
881		-	which the deposit will be returned to the lessee.
882		-	(6) A statement indicating who is responsible for property if it is
883		-	lost, stolen, damaged, or destroyed.
884		-	(7) A statement indicating that the value of lost, stolen, damaged,
885		-	or destroyed property is its fair market value on the date that it is
886		-	lost, stolen, damaged, or destroyed.
887		-	(8) A statement indicating whether the property is new or used.
888		-	However, property that is new may be described as used.
889		-	(9) A statement that the lessee has an early purchase option to
890		-	purchase the property at any time during the period that the rental
891		-	purchase agreement is in effect. The statement must specify the
892		-	price or the formula or other method for determining the price at
893		-	which the property may be purchased.
894		-	(10) A brief explanation of the lessee's right to reinstate a rental
895		-	purchase agreement and a description of the amount, or method
896		-	of determining the amount, of any penalty or other charge
897		-	SEA 383 22
898		-	applicable under IC 24-7-5 to the reinstatement of a rental
899		-	purchase agreement.
900		-	(11) An itemization of all charges and fees included in any initial
901		-	rental payment.
902		-	SECTION 8. IC 24-7-7-1, AS AMENDED BY P.L.69-2018,
903		-	SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
904		-	JULY 1, 2022]: Sec. 1. (a) The department shall enforce this article. To
905		-	carry out this responsibility, the department may do the following:
906		-	(1) Receive and act on complaints, take action designed to obtain
907		-	voluntary compliance with this article, or commence proceedings
908		-	on the department's own initiative.
909		-	(2) Issue and enforce administrative orders under IC 4-21.5.
910		-	(3) Counsel persons and groups on their rights and duties under
911		-	this article.
912		-	(4) Establish programs for the education of consumers with
913		-	respect to rental purchase agreement practices and problems.
914		-	(5) Make studies appropriate to effectuate the purposes and
915		-	policies of this article and make the results available to the public.
916		-	(6) Adopt rules under IC 4-22-2, including emergency rules under
917		-	IC 4-22-2-37.1, to carry out this article.
918		-	(7) Maintain more than one (1) office within Indiana.
919		-	(8) Bring a civil action to restrain a person from violating this
920		-	article and for other appropriate relief, and exercise the same
921		-	enforcement powers provided under IC 24-4.5-6-108.
922		-	(9) Require a lessor to refund to the lessee any overcharges
923		-	resulting from the lessor's noncompliance with:
924		-	(A) the terms of a rental purchase agreement; or
925		-	(B) this article, or any order or rule issued or adopted by
926		-	the department under this article.
927		-	(b) If the department determines, after notice and an opportunity to
928		-	be heard, that a person has violated this article, or any order or rule
929		-	issued or adopted by the department under this article, the
930		-	department may, in addition to or instead of all other remedies
931		-	available under this section, impose upon the person a civil penalty not
932		-	greater than ten thousand dollars ($10,000) per violation.
933		-	SECTION 9. IC 28-1-2-30, AS AMENDED BY P.L.136-2018,
934		-	SECTION 205, IS AMENDED TO READ AS FOLLOWS
935		-	[EFFECTIVE UPON PASSAGE]: Sec. 30. (a) As used in this section,
936		-	"financial institution" means any bank, trust company, corporate
937		-	fiduciary, savings association, credit union, savings bank, bank of
938		-	discount and deposit, or industrial loan and investment company
939		-	organized or reorganized under the laws of this state, and includes
940		-	SEA 383 23
941		-	licensees and registrants under IC 24-4.4, IC 24-4.5, IC 24-7,
942		-	IC 24-12, IC 28-1-29, IC 28-7-5, IC 28-8-4, IC 28-8-5, and 750
943		-	IAC 9.
944		-	(b) Except as otherwise provided, a member of the department or
945		-	the director or deputy, assistant, or any other person having access to
946		-	any such information may not disclose to any person, other than
947		-	officially to the department, by the report made to it, or to the board of
948		-	directors, partners, or owners, or in compliance with the order of a
949		-	court, the names of the depositors or shareholders in any financial
950		-	institution, or the amount of money on deposit in any financial
951		-	institution at any time in favor of any depositor, or any other
952		-	information concerning the affairs of any such financial institution.
953		-	SECTION 10. IC 28-7-1-31, AS AMENDED BY P.L.35-2010,
954		-	SECTION 167, IS AMENDED TO READ AS FOLLOWS
955		-	[EFFECTIVE JULY 1, 2022]: Sec. 31. Every credit union shall make
956		-	provisions for adequate fidelity coverage for all directors, officers, and
957		-	employees having access to money or bonds of the credit union. The
958		-	amount and form of fidelity coverage must be approved annually by
959		-	the board of directors of the credit union. Coverage may be provided:
960		-	(1) in the form of a blanket fidelity bond issued by a corporate
961		-	surety authorized to transact business in Indiana; or
962		-	(2) through the establishment of a separate reserve fund within
963		-	the credit union for that purpose.
964		-	SECTION 11. IC 28-8-4-15, AS AMENDED BY P.L.129-2020,
965		-	SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
966		-	JULY 1, 2022]: Sec. 15. (a) As used in this chapter, "payment
967		-	instrument" means:
968		-	(1) a check;
969		-	(2) a draft;
970		-	(3) a money order;
971		-	(4) a traveler's check;
972		-	(5) a stored value card, or stored value account, other than a
973		-	closed system stored value card; or
974		-	(6) an instrument or written order for the transmission or payment
975		-	of money;
976		-	sold or issued to one (1) or more persons, whether such instrument is
977		-	negotiable.
978		-	(b) As used in this chapter, "payment instrument" does not include:
979		-	(1) a credit card voucher;
980		-	(2) a letter of credit;
981		-	(3) an instrument that is redeemable by the issuer in goods or
982		-	services; or
983		-	SEA 383 24
984		-	(4) a closed system stored value card.
985		-	SECTION 12. IC 28-8-4-19.5, AS AMENDED BY P.L.32-2021,
986		-	SECTION 86, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
987		-	JULY 1, 2022]: Sec. 19.5. As used in this chapter, "stored value
988		-	account" or "stored value card" means any account, a card or device
989		-	that:
990		-	(1) may be used by a holder to:
991		-	(A) perform financial transactions; or
992		-	(B) obtain, purchase, or receive money, goods, or services;
993		-	in an amount or having a value that does not exceed the dollar
994		-	value of the account, card; or device; and
995		-	(2) either:
996		-	(A) in the case of a card or similar device, has a magnetic
997		-	stripe or computer chip that enables dollar values to be
998		-	electronically added to or deducted from the dollar value of the
999		-	card. or
1000		-	(B) in the case of an account, uses an account number unique
1001		-	to the holder for the purposes set forth in subdivision (1).
1002		-	SECTION 13. IC 28-10-1-1, AS AMENDED BY P.L.54-2021,
1003		-	SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1004		-	JULY 1, 2022]: Sec. 1. A reference to a federal law or federal
1005		-	regulation in this title is a reference to the law or regulation as in effect
1006		-	December 31, 2020. 2021.
1007		-	SECTION 14. IC 28-15-1-11 IS AMENDED TO READ AS
1008		-	FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. "Savings
1009		-	association" means any:
1010		-	(1) building and loan association;
1011		-	(2) savings and loan association;
1012		-	(3) rural loan and savings association; or
1013		-	(4) guaranty loan and savings association;
1014		-	organized or reorganized and operating under the laws of Indiana, any
1015		-	other state, or the United States, whether in stock or mutual form.
1016		-	SECTION 15. IC 28-15-10-3 IS AMENDED TO READ AS
1017		-	FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. As used in this
1018		-	chapter, "Indiana savings association" means:
1019		-	(1) a savings association whose home office is located in Indiana;
1020		-	or
1021		-	(2) a federal savings and loan association whose home office is
1022		-	located in Indiana.
1023		-	SECTION 16. IC 28-15-14-1, AS AMENDED BY P.L.27-2012,
1024		-	SECTION 118, IS AMENDED TO READ AS FOLLOWS
1025		-	[EFFECTIVE UPON PASSAGE]: Sec. 1. (a) A savings association
1026		-	SEA 383 25
1027		-	may be:
1028		-	(1) merged or consolidated with; or
1029		-	(2) converted into;
1030		-	a federal savings and loan association, under the charter of the federal
1031		-	savings and loan association or under a new charter issued to the
1032		-	converted association or the merged or consolidated association, upon
1033		-	a vote of fifty-one percent (51%) or more of the votes cast at a legal
1034		-	meeting of the shareholders and members of the state chartered savings
1035		-	association called to consider the proposed merger, consolidation, or
1036		-	conversion.
1037		-	(b) A merger, consolidation, or conversion under this section must
1038		-	be accomplished:
1039		-	(1) in compliance with the laws of the United States relating to
1040		-	the merger, consolidation, or conversion; and
1041		-	(2) upon terms and conditions prescribed or approved by the
1042		-	Office of the Comptroller of the Currency or its successor.
1043		-	SECTION 17. IC 28-15-14-2 IS AMENDED TO READ AS
1044		-	FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) If a savings
1045		-	association:
1046		-	(1) merges with;
1047		-	(2) consolidates with; or
1048		-	(3) is converted into;
1049		-	a federal savings and loan association, the savings association shall file
1050		-	with the secretary of state three (3) copies of a certificate executed by
1051		-	a duly constituted federal authority showing the merger, consolidation,
1052		-	or conversion.
1053		-	(b) Upon the payment of the fees prescribed by law, the secretary of
1054		-	state shall:
1055		-	(1) note the filing upon each of the copies;
1056		-	(2) retain one (1) copy in the secretary's office; and
1057		-	(3) return two (2) copies to the association.
1058		-	(c) One (1) of the copies returned to a savings association under
1059		-	subsection (b) shall be filed by the savings association with the
1060		-	department and the other copy shall be filed with the recorder of the
1061		-	county in which the principal office of the savings association is
1062		-	located.
1063		-	(d) Upon completion of the filings required by this section, the
1064		-	savings association ceases to be a corporation under Indiana law,
1065		-	except as provided in section 4 of this chapter.
1066		-	SECTION 18. IC 28-15-14-3 IS AMENDED TO READ AS
1067		-	FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Upon the
1068		-	effective date of a merger, consolidation, or conversion under sections
1069		-	SEA 383 26
1070		-	1 and 2 of this chapter, all of the assets and property of the state
1071		-	chartered savings association of every kind and character, including:
1072		-	(1) real, personal, and mixed property;
1073		-	(2) tangible and intangible property; and
1074		-	(3) choses in action, rights, and credits that:
1075		-	(A) the savings association owns; or
1076		-	(B) would inure to the savings association;
1077		-	shall immediately, by operation of law and without any conveyance or
1078		-	transfer, and without any further act or deed, be vested in and become
1079		-	the property of the federal savings and loan association.
1080		-	(b) A federal savings and loan association referred to in subsection
1081		-	(a) shall have, hold, and enjoy the assets and property of the state
1082		-	chartered savings association after a merger, consolidation, or
1083		-	conversion under sections 1 and 2 of this chapter in its own right, as
1084		-	fully and to the same extent that the assets and property were
1085		-	possessed, held, and enjoyed by the state chartered savings association
1086		-	before the merger, consolidation, or conversion.
1087		-	(c) After a merger, consolidation, or conversion under sections 1
1088		-	and 2 of this chapter, the federal savings and loan association is
1089		-	considered a continuation of the entity and identity of the state
1090		-	chartered savings association, and all of the rights and obligations of
1091		-	the savings association remain unimpaired.
1092		-	(d) The federal association, at the time of the taking effect of the
1093		-	merger, consolidation, or conversion under sections 1 and 2 of this
1094		-	chapter, shall succeed to all of the rights and obligations and the duties
1095		-	and liabilities connected with the state chartered savings association.
1096		-	SECTION 19. IC 28-15-14-4, AS AMENDED BY P.L.27-2012,
1097		-	SECTION 119, IS AMENDED TO READ AS FOLLOWS
1098		-	[EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Subject to regulations
1099		-	prescribed by the Office of the Comptroller of the Currency or its
1100		-	successor, a federal savings and loan association located in Indiana or
1101		-	in any other state, by resolution approved by its board of directors and
1102		-	adopted by a vote of fifty-one percent (51%) or more of the votes cast
1103		-	at any annual meeting or at any special meeting of its members called
1104		-	to consider the action, may convert itself into a state chartered savings
1105		-	association under this article.
1106		-	(b) A resolution referred to in subsection (a), when adopted by the
1107		-	members of a federal savings and loan association, must:
1108		-	(1) designate the names and the number of the directors who will
1109		-	serve as directors of the savings association after the conversion
1110		-	takes effect; and
1111		-	(2) authorize the directors to execute articles of incorporation.
1112		-	SEA 383 27
1113		-	(c) The articles of incorporation executed under this section must
1114		-	include the contents required by IC 28-12-2-1 except that, instead of
1115		-	disclosing the name and address of each incorporator as required by
1116		-	IC 28-12-2-1(4), the articles must:
1117		-	(1) indicate that the savings association is incorporated by
1118		-	conversion of a federal savings and loan association into a state
1119		-	chartered savings association; and
1120		-	(2) state the name of the federal savings and loan association
1121		-	converted under this section.
1122		-	(d) The department must receive from the federal savings and loan
1123		-	association:
1124		-	(1) three (3) copies of the resolution, certified by the secretary or
1125		-	assistant secretary of the federal savings and loan association; and
1126		-	(2) the articles of incorporation, in triplicate, signed and
1127		-	acknowledged by the directors designated under subsection
1128		-	(b)(1).
1129		-	(e) The department shall approve or disapprove the proposed
1130		-	conversion of a federal savings and loan association into a state
1131		-	chartered savings association under this section. The department may
1132		-	not approve a proposed conversion unless the department, after
1133		-	appropriate investigation or examination, finds all of the following:
1134		-	(1) That the state chartered savings association resulting from the
1135		-	conversion will operate in a safe, sound, and prudent manner.
1136		-	(2) That the proposed charter conversion will not result in a state
1137		-	chartered savings association that has:
1138		-	(A) inadequate capital;
1139		-	(B) unsatisfactory management; or
1140		-	(C) poor earnings prospects.
1141		-	(3) That the management or other principals of the savings
1142		-	association are qualified by character and financial responsibility
1143		-	to control and operate in a legal and proper manner the proposed
1144		-	state chartered savings association.
1145		-	(4) That the interests of the depositors, the creditors, and the
1146		-	public generally will not be jeopardized by the proposed charter
1147		-	conversion.
1148		-	(f) If the department approves the resolution and articles of
1149		-	incorporation submitted under subsection (d), the department shall:
1150		-	(1) indicate its approval on the resolution and articles of
1151		-	incorporation in the manner prescribed by IC 28-12-5-1; and
1152		-	(2) present the articles of incorporation to the secretary of state.
1153		-	(g) If the secretary of state finds that the articles of incorporation
1154		-	conform to law, the secretary of state shall:
1155		-	SEA 383 28
1156		-	(1) endorse the secretary's approval on the copies of the articles
1157		-	of incorporation;
1158		-	(2) when all fees required by law have been paid:
1159		-	(A) file one (1) copy of the articles of incorporation in the
1160		-	secretary's office; and
1161		-	(B) issue a certificate of incorporation to the savings
1162		-	association; and
1163		-	(3) return the certificate of incorporation and two (2) copies of the
1164		-	articles of incorporation to the directors of the savings association
1165		-	designated under subsection (b)(1).
1166		-	(h) The conversion of a federal savings and loan association into a
1167		-	state chartered savings association under this section is effective when
1168		-	the secretary of state issues the certificate of incorporation under
1169		-	subsection (g). However, before the savings association may transact
1170		-	business under this article or incur indebtedness, except indebtedness
1171		-	that is incidental to its organization, one (1) of the copies of its articles
1172		-	of incorporation bearing the endorsement of the approval of the
1173		-	department and of the secretary of state must be filed for record with
1174		-	the recorder of the county in which the principal office of the savings
1175		-	association is located.
1176		-	SECTION 20. IC 28-15-14-5 IS AMENDED TO READ AS
1177		-	FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Upon the
1178		-	effective date of the conversion of a federal savings and loan
1179		-	association into a state chartered savings association under section 4 of
1180		-	this chapter, all of the assets and property of the federal savings and
1181		-	loan association of every kind and character, including:
1182		-	(1) real, personal, and mixed property;
1183		-	(2) tangible and intangible property; and
1184		-	(3) choses in action, rights, and credits that:
1185		-	(A) the savings and loan association owns; or
1186		-	(B) would inure to the savings and loan association;
1187		-	shall immediately, by operation of law and without any conveyance or
1188		-	transfer, and without any further act or deed, be vested in and become
1189		-	the property of the state chartered savings association.
1190		-	(b) After the conversion of a federal savings and loan association
1191		-	into a state chartered savings association under section 4 of this
1192		-	chapter:
1193		-	(1) the state chartered savings association shall have, hold, and
1194		-	enjoy the assets and property of the federal savings and loan
1195		-	association in its own right, as fully and to the same extent that
1196		-	the assets and property were possessed, held, and enjoyed by the
1197		-	federal savings and loan association before the conversion; and
1198		-	SEA 383 29
1199		-	(2) the state chartered savings association is considered a
1200		-	continuation of the entity and identity of the federal savings and
1201		-	loan association, and all of the rights and obligations of the
1202		-	federal savings and loan association remain unimpaired.
1203		-	(c) When the conversion of a federal savings and loan association
1204		-	into a state chartered savings association under section 4 of this chapter
1205		-	takes effect, the state chartered savings association succeeds to all of
1206		-	the rights and obligations and the duties and liabilities connected with
1207		-	the federal savings and loan association.
1208		-	SECTION 21. IC 28-15-14-6 IS AMENDED TO READ AS
1209		-	FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. After the
1210		-	conversion of a federal savings and loan association into a state
1211		-	chartered savings association under section 4 of this chapter, the
1212		-	organization of the savings association shall be completed in the
1213		-	manner provided by IC 28-12, except that bylaws for the savings
1214		-	association:
1215		-	(1) may be adopted by the members of the federal association
1216		-	when the members adopt the resolution authorizing the
1217		-	conversion; and
1218		-	(2) may become effective upon the issuance of the certificate of
1219		-	incorporation under section 4(f) 4(g) of this chapter.
1220		-	SECTION 22. An emergency is declared for this act.
1221		-	SEA 383 President of the Senate
1222		-	President Pro Tempore
1223		-	Speaker of the House of Representatives
1224		-	Governor of the State of Indiana
1225		-	Date: Time:
1226		-	SEA 383
	76	+	1 SECTION 1. IC 24-4.4-1-102, AS AMENDED BY P.L.54-2021,
	77	+	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	78	+	3 JULY 1, 2022]: Sec. 102. (1) This article shall be liberally construed
	79	+	4 and applied to promote its underlying purposes and policies.
	80	+	5 (2) The underlying purposes and policies of this article are:
	81	+	6 (a) to permit and encourage the development of fair and
	82	+	7 economically sound first lien mortgage lending practices; and
	83	+	8 (b) to conform the regulation of first lien mortgage lending
	84	+	9 practices to applicable state and federal laws, rules, regulations,
	85	+	10 policies, and guidance.
	86	+	11 (3) A reference to a requirement imposed by this article includes
	87	+	12 reference to a related rule of the department adopted under this article.
	88	+	13 (4) A reference to a federal law in this article is a reference to the
	89	+	14 law as in effect December 31, 2020. 2021.
	90	+	15 SECTION 2. IC 24-4.5-1-102, AS AMENDED BY P.L.54-2021,
	91	+	ES 383—LS 6690/DI 101 2
	92	+	1 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	93	+	2 JULY 1, 2022]: Sec. 102. (1) This article shall be liberally construed
	94	+	3 and applied to promote its underlying purposes and policies.
	95	+	4 (2) The underlying purposes and policies of this article are:
	96	+	5 (a) to simplify, clarify, and modernize the law governing retail
	97	+	6 installment sales, consumer credit, small loans, and usury;
	98	+	7 (b) to provide rate ceilings to assure an adequate supply of credit
	99	+	8 to consumers;
	100	+	9 (c) to further consumer understanding of the terms of credit
	101	+	10 transactions and to foster competition among suppliers of
	102	+	11 consumer credit so that consumers may obtain credit at
	103	+	12 reasonable cost;
	104	+	13 (d) to protect consumer buyers, lessees, and borrowers against
	105	+	14 unfair practices by some suppliers of consumer credit, having due
	106	+	15 regard for the interests of legitimate and scrupulous creditors;
	107	+	16 (e) to permit and encourage the development of fair and
	108	+	17 economically sound consumer credit practices;
	109	+	18 (f) to conform the regulation of consumer credit transactions to
	110	+	19 the policies of the Consumer Credit Protection Act (15 U.S.C.
	111	+	20 1601 et seq.) and to applicable state and federal laws, rules,
	112	+	21 regulations, policies, and guidance; and
	113	+	22 (g) to make uniform the law, including administrative rules
	114	+	23 among the various jurisdictions.
	115	+	24 (3) A reference to a requirement imposed by this article includes
	116	+	25 reference to a related rule or guidance of the department adopted
	117	+	26 pursuant to this article.
	118	+	27 (4) A reference to a federal law in this article is a reference to the
	119	+	28 law as in effect December 31, 2020. 2021.
	120	+	29 (5) This article applies to a transaction if the director determines
	121	+	30 that the transaction:
	122	+	31 (a) is in substance a disguised consumer credit transaction; or
	123	+	32 (b) involves the application of subterfuge for the purpose of
	124	+	33 avoiding this article.
	125	+	34 A determination by the director under this subsection must be in
	126	+	35 writing and shall be delivered to all parties to the transaction.
	127	+	36 IC 4-21.5-3 applies to a determination made under this subsection.
	128	+	37 (6) The authority of this article remains in effect, whether a licensee,
	129	+	38 an individual, or a person subject to this article acts or claims to act
	130	+	39 under any licensing or registration law of this state, or claims to act
	131	+	40 without such authority.
	132	+	41 (7) A violation of a state or federal law, regulation, or rule
	133	+	42 applicable to consumer credit transactions is a violation of this article.
	134	+	ES 383—LS 6690/DI 101 3
	135	+	1 (8) The department may enforce penalty provisions set forth in 15
	136	+	2 U.S.C. 1640 for violations of disclosure requirements applicable to
	137	+	3 mortgage transactions.
	138	+	4 SECTION 3. IC 24-4.5-2-202, AS AMENDED BY P.L.69-2018,
	139	+	5 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	140	+	6 JULY 1, 2022]: Sec. 202. (1) In addition to the credit service charge
	141	+	7 permitted by this chapter, a seller may contract for and receive any of
	142	+	8 the following additional charges in connection with a consumer credit
	143	+	9 sale:
	144	+	10 (a) Official fees and taxes.
	145	+	11 (b) Charges for insurance as described in subsection (2).
	146	+	12 (c) Notwithstanding provisions of the Consumer Credit Protection
	147	+	13 Act (15 U.S.C. 1601 et seq.) concerning disclosure, charges for
	148	+	14 other benefits, including insurance, conferred on the consumer, if
	149	+	15 the benefits are of value to the consumer and if the charges are
	150	+	16 reasonable in relation to the benefits, and are excluded as
	151	+	17 permissible additional charges from the credit service charge.
	152	+	18 With respect to any additional charge not specifically provided for
	153	+	19 in this section, to be a permitted charge under this subsection the
	154	+	20 seller must submit a written explanation of the charge to the
	155	+	21 department indicating how the charge would be assessed and the
	156	+	22 value or benefit to the consumer. Supporting documents may be
	157	+	23 required by the department. The department shall determine
	158	+	24 whether the charge would be of benefit to the consumer and is
	159	+	25 reasonable in relation to the benefits.
	160	+	26 (d) A charge not to exceed twenty-five dollars ($25) for each
	161	+	27 returned payment by a bank or other depository institution of a
	162	+	28 dishonored check, electronic funds transfer, negotiable order of
	163	+	29 withdrawal, or share draft issued by the consumer.
	164	+	30 (e) Annual participation fees assessed in connection with a
	165	+	31 revolving charge account. Annual participation fees must:
	166	+	32 (i) be reasonable in amount;
	167	+	33 (ii) bear a reasonable relationship to the seller's costs to
	168	+	34 maintain and monitor the charge account; and
	169	+	35 (iii) not be assessed for the purpose of circumvention or
	170	+	36 evasion of this article, as determined by the department.
	171	+	37 (f) A charge not to exceed twenty-five dollars ($25) for a
	172	+	38 skip-a-payment service, subject to the following:
	173	+	39 (i) At the time of use of the service, the consumer must be
	174	+	40 given written notice of the amount of the charge and must
	175	+	41 acknowledge the amount in writing, including by electronic
	176	+	42 signature.
	177	+	ES 383—LS 6690/DI 101 4
	178	+	1 (ii) A charge for a skip-a-payment service may not be assessed
	179	+	2 with respect to a consumer credit sale subject to the provisions
	180	+	3 on rebate upon prepayment that are set forth in section 210 of
	181	+	4 this chapter.
	182	+	5 (iii) A charge for a skip-a-payment service may not be
	183	+	6 assessed with respect to any payment for which a delinquency
	184	+	7 charge has been assessed under section 203.5 of this chapter.
	185	+	8 (g) A charge not to exceed ten dollars ($10) for an optional
	186	+	9 expedited payment service, subject to the following:
	187	+	10 (i) The charge may be assessed only upon request by the
	188	+	11 consumer to use the expedited payment service.
	189	+	12 (ii) The amount of the charge must be disclosed to the
	190	+	13 consumer at the time of the consumer's request to use the
	191	+	14 expedited payment service.
	192	+	15 (iii) The consumer must be informed that the consumer retains
	193	+	16 the option to make a payment by traditional means.
	194	+	17 (iv) The charge may not be established in advance, through
	195	+	18 any agreement with the consumer, as the expected method of
	196	+	19 payment.
	197	+	20 (v) The charge may not be assessed with respect to any
	198	+	21 payment for which a delinquency charge has been assessed
	199	+	22 under section 203.5 of this chapter.
	200	+	23 (h) A charge for a GAP agreement, subject to subsection (4).
	201	+	24 (2) An additional charge may be made for insurance written in
	202	+	25 connection with the sale, other than insurance protecting the seller
	203	+	26 against the consumer's default or other credit loss:
	204	+	27 (a) with respect to insurance against loss of or damage to
	205	+	28 property, or against liability, if the seller furnishes a clear and
	206	+	29 specific statement in writing to the consumer, setting forth the
	207	+	30 cost of the insurance if obtained from or through the seller and
	208	+	31 stating that the consumer may choose the person, subject to the
	209	+	32 seller's reasonable approval, through whom the insurance is to be
	210	+	33 obtained; and
	211	+	34 (b) with respect to consumer credit insurance providing life,
	212	+	35 accident, unemployment or other loss of income, or health
	213	+	36 coverage, if the insurance coverage is not a factor in the approval
	214	+	37 by the seller of the extension of credit and is clearly disclosed in
	215	+	38 writing to the consumer, and if, in order to obtain the insurance in
	216	+	39 connection with the extension of credit, the consumer gives
	217	+	40 specific, affirmative, written indication of the desire to do so after
	218	+	41 written disclosure of the cost.
	219	+	42 (3) With respect to a subordinate lien mortgage transaction, the
	220	+	ES 383—LS 6690/DI 101 5
	221	+	1 following closing costs, if the costs are bona fide, reasonable in
	222	+	2 amount, and not for the purpose of circumvention or evasion of this
	223	+	3 article:
	224	+	4 (a) fees for title examination, abstract of title, title insurance,
	225	+	5 property surveys, or similar purposes;
	226	+	6 (b) fees for preparing deeds, mortgages, and reconveyance,
	227	+	7 settlement, and similar documents;
	228	+	8 (c) notary and credit report fees;
	229	+	9 (d) amounts required to be paid into escrow or trustee accounts if
	230	+	10 the amounts would not otherwise be included in the credit service
	231	+	11 charge; and
	232	+	12 (e) appraisal fees.
	233	+	13 (4) An additional charge may be made for a GAP agreement, subject
	234	+	14 to the following:
	235	+	15 (a) A GAP agreement or GAP coverage may not be required by
	236	+	16 the seller, and that fact must be disclosed in writing to the
	237	+	17 consumer.
	238	+	18 (b) The charge for the initial term of coverage under the GAP
	239	+	19 agreement must be disclosed in writing to the consumer. The
	240	+	20 charge may be disclosed on a unit-cost basis only in the case of
	241	+	21 the following transactions:
	242	+	22 (i) Revolving charge accounts.
	243	+	23 (ii) Closed-end credit transactions, if the request for coverage
	244	+	24 is made by mail or telephone.
	245	+	25 (iii) Closed-end credit transactions, if the GAP agreement
	246	+	26 limits the total amount of indebtedness eligible for coverage.
	247	+	27 (c) If the term of coverage under the GAP agreement is less than
	248	+	28 the term of the consumer credit sale, the term of coverage under
	249	+	29 the GAP agreement must be disclosed in writing to the consumer.
	250	+	30 (d) The consumer must sign or initial an affirmative written
	251	+	31 request for coverage after receiving all required disclosures.
	252	+	32 (e) The GAP agreement must include the following:
	253	+	33 (i) In the case of GAP coverage for a new motor vehicle, the
	254	+	34 manufacturer's suggested retail price (MSRP) for the motor
	255	+	35 vehicle.
	256	+	36 (ii) In the case of GAP coverage for a used motor vehicle, the
	257	+	37 National Automobile Dealers Association (NADA) average
	258	+	38 retail value for the motor vehicle, as determined by use of a
	259	+	39 third party valuation service provider that is customarily
	260	+	40 relied upon in the used motor vehicle commercial
	261	+	41 marketplace.
	262	+	42 (iii) The name of the financing entity taking assignment of the
	263	+	ES 383—LS 6690/DI 101 6
	264	+	1 agreement.
	265	+	2 (iv) The name and address of the consumer.
	266	+	3 (v) The name of the creditor selling the agreement.
	267	+	4 (vi) Information advising the consumer that the consumer may
	268	+	5 be able to obtain similar coverage from the consumer's primary
	269	+	6 insurance carrier.
	270	+	7 (vii) A coverage provision that includes a minimum deductible
	271	+	8 of five hundred dollars ($500).
	272	+	9 (viii) A provision providing for a minimum thirty (30) day
	273	+	10 free-look period.
	274	+	11 (ix) In the case of a consumer credit sale involving a motor
	275	+	12 vehicle, a provision excluding the sale of GAP coverage if the
	276	+	13 amount financed under the consumer credit sale (not including
	277	+	14 the cost of the GAP agreement, the cost of any credit
	278	+	15 insurance, and the cost of any warranties or service
	279	+	16 agreements) is less than eighty percent (80%) of the
	280	+	17 manufacturer's suggested retail price (MSRP), in the case of a
	281	+	18 new motor vehicle, or the National Automobile Dealers
	282	+	19 Association (NADA) average retail value (as determined by
	283	+	20 use of a third party valuation service provider that is
	284	+	21 customarily relied upon in the used motor vehicle
	285	+	22 commercial marketplace), in the case of a used motor
	286	+	23 vehicle.
	287	+	24 (x) In the case of a GAP agreement in which the charge for the
	288	+	25 agreement exceeds four hundred dollars ($400), specific
	289	+	26 instructions that may be used by the consumer to cancel the
	290	+	27 agreement and obtain a refund of the unearned GAP charge
	291	+	28 before prepayment in full, in accordance with the procedures,
	292	+	29 and subject to the conditions, set forth in subdivision (f).
	293	+	30 (f) If the charge for the GAP agreement exceeds four hundred
	294	+	31 dollars ($400), the consumer is entitled to cancel the agreement
	295	+	32 and obtain a refund of the unearned GAP charge before
	296	+	33 prepayment in full. Refunds of unearned GAP charges shall be
	297	+	34 made subject to the following conditions:
	298	+	35 (i) A refund of the charge for a GAP agreement must be
	299	+	36 calculated using a method that is no less favorable to the
	300	+	37 consumer than a refund calculated on a pro rata basis.
	301	+	38 (ii) The consumer is entitled to a refund of the unearned GAP
	302	+	39 agreement charge as outlined in the GAP agreement.
	303	+	40 (iii) The seller of the GAP agreement is responsible for
	304	+	41 making a timely refund to the consumer of unearned GAP
	305	+	42 agreement charges under the terms and conditions of the GAP
	306	+	ES 383—LS 6690/DI 101 7
	307	+	1 agreement.
	308	+	2 (g) Upon prepayment in full of the consumer credit sale:
	309	+	3 (i) the GAP coverage is automatically terminated; and
	310	+	4 (ii) the seller of the GAP agreement must issue a refund in
	311	+	5 accordance with subdivision (f).
	312	+	6 (h) A creditor that sells GAP agreements must:
	313	+	7 (i) insure its GAP agreement obligations under a contractual
	314	+	8 liability insurance policy issued by an insurer authorized to
	315	+	9 engage in the insurance business in Indiana; and
	316	+	10 (ii) retain appropriate records, as required under this article,
	317	+	11 regarding GAP agreements sold, refunded, and expired.
	318	+	12 (5) As used in this section, "expedited payment service" means a
	319	+	13 service offered to a consumer to ensure that a payment made by the
	320	+	14 consumer with respect to a consumer credit sale will be reflected as
	321	+	15 paid and posted on an expedited basis.
	322	+	16 (6) As used in this section:
	323	+	17 (a) "guaranteed asset protection agreement";
	324	+	18 (b) "guaranteed auto protection agreement"; or
	325	+	19 (c) "GAP agreement";
	326	+	20 means, with respect to consumer credit sales involving motor vehicles
	327	+	21 or other titled assets, an agreement in which the seller agrees to cancel
	328	+	22 or waive all or part of the outstanding debt after all property insurance
	329	+	23 benefits have been exhausted after the occurrence of a specified event.
	330	+	24 (7) As used in this section, "skip-a-payment service" means a
	331	+	25 service that:
	332	+	26 (a) is offered by a creditor to a consumer; and
	333	+	27 (b) permits the consumer to miss or skip a payment due under a
	334	+	28 consumer credit sale without resulting in default.
	335	+	29 SECTION 4. IC 24-4.5-3-201, AS AMENDED BY P.L.85-2020,
	336	+	30 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	337	+	31 UPON PASSAGE]: Sec. 201. Loan Finance Charge for Consumer
	338	+	32 Loans other than Supervised Loans—(1) This section does not apply
	339	+	33 to a supervised loan (as defined in section 501 of this chapter).
	340	+	34 Except as provided in subsections (7) and (9), with respect to a
	341	+	35 consumer loan, other than a supervised loan (as defined in section 501
	342	+	36 of this chapter), a lender may contract for a loan finance charge,
	343	+	37 calculated according to the actuarial method, not exceeding twenty-five
	344	+	38 percent (25%) per year on the unpaid balances of the principal (as
	345	+	39 defined in section 107(3) of this chapter).
	346	+	40 (2) In the case of a loan agreement entered into before July 1, 2020,
	347	+	41 this section does not limit or restrict the manner of contracting for the
	348	+	42 loan finance charge, whether by way of add-on, discount, or otherwise,
	349	+	ES 383—LS 6690/DI 101 8
	350	+	1 so long as the rate of the loan finance charge does not exceed that
	351	+	2 permitted by this section. If the loan is precomputed:
	352	+	3 (a) the loan finance charge may be calculated on the assumption
	353	+	4 that all scheduled payments will be made when due; and
	354	+	5 (b) the effect of prepayment is governed by the provisions on
	355	+	6 rebate upon prepayment in section 210 of this chapter.
	356	+	7 (3) The following apply to a loan agreement for a consumer loan (or
	357	+	8 for the refinancing or consolidation of a consumer loan) that is entered
	358	+	9 into after June 30, 2020:
	359	+	10 (a) The consumer loan is subject to this section, including the
	360	+	11 limitations set forth in:
	361	+	12 (i) subsection (1) with respect to the loan finance charge; and
	362	+	13 (ii) subsection (9)(b) with respect to the amount of the
	363	+	14 authorized nonrefundable prepaid finance charge, in the case
	364	+	15 of a consumer loan that is not secured by an interest in land.
	365	+	16 (b) The loan finance charge authorized by this section must be:
	366	+	17 (i) contracted for between the lender and the debtor; and
	367	+	18 (ii) calculated by applying a rate not exceeding the rate set
	368	+	19 forth in subsection (1) to unpaid balances of the principal (as
	369	+	20 defined in section 107(3) of this chapter).
	370	+	21 (c) A loan agreement for a precomputed consumer loan is
	371	+	22 prohibited.
	372	+	23 (d) Subject to subsection (12), in addition to the loan finance
	373	+	24 charge authorized by subsection (1) and to any other fees
	374	+	25 permitted by this chapter, and not subject to the twenty-five
	375	+	26 percent (25%) rate set forth in subsection (1), the lender may
	376	+	27 contract for and receive as a condition for, or an incident to, the
	377	+	28 extension of credit a nonrefundable prepaid finance charge under
	378	+	29 subsection (9), whether the charge is:
	379	+	30 (i) paid separately in cash or by check before or at
	380	+	31 consummation; or
	381	+	32 (ii) withheld from the proceeds of the consumer loan.
	382	+	33 (4) For the purposes of this section, the term of a loan commences
	383	+	34 with the date the loan is made. Differences in the lengths of months are
	384	+	35 disregarded, and a day may be counted as one-thirtieth (1/30) of a
	385	+	36 month. Subject to classifications and differentiations the lender may
	386	+	37 reasonably establish, a part of a month in excess of fifteen (15) days
	387	+	38 may be treated as a full month if periods of fifteen (15) days or less are
	388	+	39 disregarded and if that procedure is not consistently used to obtain a
	389	+	40 greater yield than would otherwise be permitted. For purposes of
	390	+	41 computing average daily balances, the creditor may elect to treat all
	391	+	42 months as consisting of thirty (30) days.
	392	+	ES 383—LS 6690/DI 101 9
	393	+	1 (5) With respect to a consumer loan made pursuant to a revolving
	394	+	2 loan account:
	395	+	3 (a) the loan finance charge shall be deemed not to exceed the
	396	+	4 maximum annual percentage rate if the loan finance charge
	397	+	5 contracted for and received does not exceed a charge in each
	398	+	6 monthly billing cycle which is two and eighty-three thousandths
	399	+	7 percent (2.083%) of an amount not greater than:
	400	+	8 (i) the average daily balance of the debt;
	401	+	9 (ii) the unpaid balance of the debt on the same day of the
	402	+	10 billing cycle; or
	403	+	11 (iii) subject to subsection (6), the median amount within a
	404	+	12 specified range within which the average daily balance or the
	405	+	13 unpaid balance of the debt, on the same day of the billing
	406	+	14 cycle, is included; for the purposes of this clause and clause
	407	+	15 (ii), a variation of not more than four (4) days from month to
	408	+	16 month is "the same day of the billing cycle";
	409	+	17 (b) if the billing cycle is not monthly, the loan finance charge
	410	+	18 shall be deemed not to exceed the maximum annual percentage
	411	+	19 rate if the loan finance charge contracted for and received does
	412	+	20 not exceed a percentage which bears the same relation to
	413	+	21 one-twelfth (1/12) the maximum annual percentage rate as the
	414	+	22 number of days in the billing cycle bears to thirty (30); and
	415	+	23 (c) notwithstanding subsection (1), if there is an unpaid balance
	416	+	24 on the date as of which the loan finance charge is applied, the
	417	+	25 lender may contract for and receive a charge not exceeding fifty
	418	+	26 cents ($0.50) if the billing cycle is monthly or longer, or the pro
	419	+	27 rata part of fifty cents ($0.50) which bears the same relation to
	420	+	28 fifty cents ($0.50) as the number of days in the billing cycle bears
	421	+	29 to thirty (30) if the billing cycle is shorter than monthly, but no
	422	+	30 charge may be made pursuant to this subdivision if the lender has
	423	+	31 made an annual charge for the same period as permitted by the
	424	+	32 provisions on additional charges in section 202(1)(c) of this
	425	+	33 chapter.
	426	+	34 (6) Subject to classifications and differentiations the lender may
	427	+	35 reasonably establish, the lender may make the same loan finance
	428	+	36 charge on all amounts financed within a specified range. A loan finance
	429	+	37 charge does not violate subsection (1) if:
	430	+	38 (a) when applied to the median amount within each range, it does
	431	+	39 not exceed the maximum permitted by subsection (1); and
	432	+	40 (b) when applied to the lowest amount within each range, it does
	433	+	41 not produce a rate of loan finance charge exceeding the rate
	434	+	42 calculated according to subdivision (a) by more than eight percent
	435	+	ES 383—LS 6690/DI 101 10
	436	+	1 (8%) of the rate calculated according to subdivision (a).
	437	+	2 (7) With respect to a consumer loan not made pursuant to a
	438	+	3 revolving loan account, the lender may contract for and receive a
	439	+	4 minimum loan finance charge of not more than thirty dollars ($30). The
	440	+	5 minimum loan finance charge allowed under this subsection may be
	441	+	6 imposed only if the lender does not contract for or receive a
	442	+	7 nonrefundable prepaid finance charge under subsection (9) and:
	443	+	8 (a) the debtor prepays in full a consumer loan, refinancing, or
	444	+	9 consolidation, regardless of whether the loan, refinancing, or
	445	+	10 consolidation is precomputed;
	446	+	11 (b) the loan, refinancing, or consolidation prepaid by the debtor
	447	+	12 is subject to a loan finance charge that:
	448	+	13 (i) is contracted for by the parties; and
	449	+	14 (ii) does not exceed the rate prescribed in subsection (1); and
	450	+	15 (c) the loan finance charge earned at the time of prepayment is
	451	+	16 less than the minimum loan finance charge contracted for under
	452	+	17 this subsection.
	453	+	18 (8) The amount of thirty dollars ($30) in subsection (7) is subject to
	454	+	19 change under the provisions on adjustment of dollar amounts
	455	+	20 (IC 24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), the
	456	+	21 Reference Base Index to be used under this subsection is the Index for
	457	+	22 October 1992.
	458	+	23 (9) Except as provided in subsection (7), and subject to subsection
	459	+	24 (12), in addition to the loan finance charge authorized by subsection (1)
	460	+	25 and to any other charges and fees permitted by this chapter, a lender
	461	+	26 may contract for and receive a nonrefundable prepaid finance charge
	462	+	27 of not more than the following:
	463	+	28 (a) In the case of a consumer loan that is secured by an interest in
	464	+	29 land and that:
	465	+	30 (i) is not made under a revolving loan account, two percent
	466	+	31 (2%) of the loan amount; or
	467	+	32 (ii) is made under a revolving loan account, two percent (2%)
	468	+	33 of the line of credit.
	469	+	34 (b) In the case of consumer loan that is not secured by an interest
	470	+	35 in land, fifty dollars ($50) if the loan agreement is entered into
	471	+	36 before July 1, 2020. If the loan agreement is entered into after
	472	+	37 June 30, 2020, not more than the following:
	473	+	38 (i) Seventy-five dollars ($75), in the case of a loan agreement
	474	+	39 for a principal amount which is two thousand dollars ($2,000)
	475	+	40 or less.
	476	+	41 (ii) One hundred fifty dollars ($150) in the case of a loan
	477	+	42 agreement for a principal amount which is more than two
	478	+	ES 383—LS 6690/DI 101 11
	479	+	1 thousand dollars ($2,000) but does not exceed four thousand
	480	+	2 dollars ($4,000).
	481	+	3 (iii) Two hundred dollars ($200) in the case of a loan
	482	+	4 agreement for a principal amount which is more than four
	483	+	5 thousand dollars ($4,000).
	484	+	6 The amounts in this subsection are not subject to change under
	485	+	7 IC 24-4.5-1-106.
	486	+	8 (10) The nonrefundable prepaid finance charge provided for in
	487	+	9 subsection (9) is not subject to refund or rebate. However, for any loan
	488	+	10 entered into after June 30, 2020, any amount charged by the lender,
	489	+	11 other than by a lender that is a depository institution (as defined in
	490	+	12 IC 24-4.5-1-301.5(12)), under subsection (9) that exceeds the
	491	+	13 applicable amount permitted by subsection (9)(b) constitutes a
	492	+	14 violation of this article under IC 24-4.5-6-107.5(l) and is subject to
	493	+	15 refund. Any amount charged by a depository institution (as defined in
	494	+	16 IC 24-4.5-1-301.5(12)) under subsection (9) that exceeds the applicable
	495	+	17 amount set forth in subsection (9)(b) is subject to refund.
	496	+	18 (11) If the director determines that a lender's accrual method of
	497	+	19 accounting as applied to a consumer loan under this section involves
	498	+	20 the application of subterfuge for the purpose of circumventing this
	499	+	21 chapter, the director may conform the loan finance charge and fees for
	500	+	22 the transaction to the limitations set forth in this section and may
	501	+	23 require a refund of overcharges under IC 24-4.5-6-106(2)(a). A
	502	+	24 determination by the director under this subsection:
	503	+	25 (a) must be in writing;
	504	+	26 (b) shall be delivered to all parties in the transaction; and
	505	+	27 (c) is subject to IC 4-21.5-3.
	506	+	28 (12) At the time of consummation of a consumer loan:
	507	+	29 (a) the loan finance charge authorized by subsection (1); and
	508	+	30 (b) the nonrefundable prepaid finance charge authorized by
	509	+	31 subsection (9) (including any amount charged by a depository
	510	+	32 institution (as defined in IC 24-4.5-1-301.5(12)) that exceeds the
	511	+	33 applicable amount set forth in subsection (9)(b));
	512	+	34 are subject to IC 35-45-7 and, when combined, may not exceed the rate
	513	+	35 set forth in IC 35-45-7-2.
	514	+	36 (13) Notwithstanding subsections (9) and (10), in the case of a
	515	+	37 consumer loan that is not secured by an interest in land, if a lender
	516	+	38 retains any part of a nonrefundable prepaid finance charge charged on
	517	+	39 a loan that is paid in full by a new loan from the same lender, the
	518	+	40 following apply:
	519	+	41 (a) If the loan is paid in full by the new loan within three (3)
	520	+	42 months after the date of the prior loan, the lender may not charge
	521	+	ES 383—LS 6690/DI 101 12
	522	+	1 a nonrefundable prepaid finance charge on the new loan, or, in the
	523	+	2 case of a revolving loan, on the increased credit line.
	524	+	3 (b) The lender may not assess more than two (2) nonrefundable
	525	+	4 prepaid finance charges in any twelve (12) month period.
	526	+	5 (c) Subject to subdivisions (a) and (b), if a loan that is entered
	527	+	6 into by a lender and a debtor before July 1, 2020, is paid in full by
	528	+	7 a new loan from the same lender after June 30, 2020, the lender
	529	+	8 may contract for and receive a nonrefundable prepaid finance
	530	+	9 charge in the amount set forth in subsection (9)(b) for loan
	531	+	10 agreements entered into after June 30, 2020.
	532	+	11 (14) In the case of a consumer loan that is secured by an interest in
	533	+	12 land, this section does not prohibit a lender from contracting for and
	534	+	13 receiving a fee for preparing deeds, mortgages, reconveyances, and
	535	+	14 similar documents under section 202(1)(d)(ii) of this chapter, in
	536	+	15 addition to the nonrefundable prepaid finance charge provided for in
	537	+	16 subsection (9).
	538	+	17 SECTION 5. IC 24-4.5-3-202, AS AMENDED BY P.L.280-2019,
	539	+	18 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	540	+	19 JULY 1, 2022]: Sec. 202. (1) In addition to the loan finance charge
	541	+	20 permitted by this chapter, a lender may contract for and receive the
	542	+	21 following additional charges in connection with a consumer loan:
	543	+	22 (a) Official fees and taxes.
	544	+	23 (b) Charges for insurance as described in subsection (2).
	545	+	24 (c) Annual participation fees assessed in connection with a
	546	+	25 revolving loan account. Annual participation fees must:
	547	+	26 (i) be reasonable in amount;
	548	+	27 (ii) bear a reasonable relationship to the lender's costs to
	549	+	28 maintain and monitor the loan account; and
	550	+	29 (iii) not be assessed for the purpose of circumvention or
	551	+	30 evasion of this article, as determined by the department.
	552	+	31 (d) With respect to a debt secured by an interest in land, the
	553	+	32 following closing costs, if they are bona fide, reasonable in
	554	+	33 amount, and not for the purpose of circumvention or evasion of
	555	+	34 this article:
	556	+	35 (i) Fees for title examination, abstract of title, title insurance,
	557	+	36 property surveys, or similar purposes.
	558	+	37 (ii) Fees for preparing deeds, mortgages, and reconveyance,
	559	+	38 settlement, and similar documents.
	560	+	39 (iii) Notary and credit report fees.
	561	+	40 (iv) Amounts required to be paid into escrow or trustee
	562	+	41 accounts if the amounts would not otherwise be included in
	563	+	42 the loan finance charge.
	564	+	ES 383—LS 6690/DI 101 13
	565	+	1 (v) Appraisal fees.
	566	+	2 (e) Notwithstanding provisions of the Consumer Credit Protection
	567	+	3 Act (15 U.S.C. 1601 et seq.) concerning disclosure, charges for
	568	+	4 other benefits, including insurance, conferred on the debtor, if the
	569	+	5 benefits are of value to the debtor and if the charges are
	570	+	6 reasonable in relation to the benefits, and are excluded as
	571	+	7 permissible additional charges from the loan finance charge. With
	572	+	8 respect to any other additional charge not specifically provided
	573	+	9 for in this section to be a permitted charge under this subsection,
	574	+	10 the creditor must submit a written explanation of the charge to the
	575	+	11 department indicating how the charge would be assessed and the
	576	+	12 value or benefit to the debtor. Supporting documents may be
	577	+	13 required by the department. The department shall determine
	578	+	14 whether the charge would be of benefit to the debtor and is
	579	+	15 reasonable in relation to the benefits.
	580	+	16 (f) A charge not to exceed twenty-five dollars ($25) for each
	581	+	17 returned payment by a bank or other depository institution of a
	582	+	18 dishonored check, electronic funds transfer, negotiable order of
	583	+	19 withdrawal, or share draft issued by the debtor.
	584	+	20 (g) With respect to a revolving loan account, a fee not to exceed
	585	+	21 twenty-five dollars ($25) in each billing cycle during which the
	586	+	22 balance due under the revolving loan account exceeds by more
	587	+	23 than one hundred dollars ($100) the maximum credit limit for the
	588	+	24 account established by the lender.
	589	+	25 (h) With respect to a revolving loan account, a transaction fee that
	590	+	26 may not exceed the greater of the following:
	591	+	27 (i) Two percent (2%) of the amount of the transaction.
	592	+	28 (ii) Ten dollars ($10).
	593	+	29 (i) A charge not to exceed twenty-five dollars ($25) for a
	594	+	30 skip-a-payment service, subject to the following:
	595	+	31 (i) At the time of use of the service, the consumer must be
	596	+	32 given written notice of the amount of the charge and must
	597	+	33 acknowledge the amount in writing, including by electronic
	598	+	34 signature.
	599	+	35 (ii) A charge for a skip-a-payment service may not be assessed
	600	+	36 with respect to a consumer loan subject to the provisions on
	601	+	37 rebate upon prepayment that are set forth in section 210 of this
	602	+	38 chapter.
	603	+	39 (iii) A charge for a skip-a-payment service may not be
	604	+	40 assessed with respect to any payment for which a delinquency
	605	+	41 charge has been assessed under section 203.5 of this chapter.
	606	+	42 (j) A charge not to exceed ten dollars ($10) for an optional
	607	+	ES 383—LS 6690/DI 101 14
	608	+	1 expedited payment service, subject to the following:
	609	+	2 (i) The charge may be assessed only upon request by the
	610	+	3 consumer to use the expedited payment service.
	611	+	4 (ii) The amount of the charge must be disclosed to the
	612	+	5 consumer at the time of the consumer's request to use the
	613	+	6 expedited payment service.
	614	+	7 (iii) The consumer must be informed that the consumer retains
	615	+	8 the option to make a payment by traditional means.
	616	+	9 (iv) The charge may not be established in advance, through
	617	+	10 any agreement with the consumer, as the expected method of
	618	+	11 payment.
	619	+	12 (v) The charge may not be assessed with respect to any
	620	+	13 payment for which a delinquency charge has been assessed
	621	+	14 under section 203.5 of this chapter.
	622	+	15 (k) A charge for a GAP agreement, subject to subsection (3).
	623	+	16 (l) With respect to consumer loans made by a person exempt from
	624	+	17 licensing under IC 24-4.5-3-502(1), a charge for a debt
	625	+	18 cancellation agreement, subject to the following:
	626	+	19 (i) A debt cancellation agreement or debt cancellation
	627	+	20 coverage may not be required by the lender, and that fact must
	628	+	21 be disclosed in writing to the consumer.
	629	+	22 (ii) The charge for the initial term of coverage under the debt
	630	+	23 cancellation agreement must be disclosed in writing to the
	631	+	24 consumer. The charge may be disclosed on a unit-cost basis
	632	+	25 only in the case of revolving loan accounts, closed-end credit
	633	+	26 transactions if the request for coverage is made by mail or
	634	+	27 telephone, and closed-end credit transactions if the debt
	635	+	28 cancellation agreement limits the total amount of indebtedness
	636	+	29 eligible for coverage.
	637	+	30 (iii) If the term of coverage under the debt cancellation
	638	+	31 agreement is less than the term of the consumer loan, the term
	639	+	32 of coverage under the debt cancellation agreement must be
	640	+	33 disclosed in writing to the consumer.
	641	+	34 (iv) The consumer must sign or initial an affirmative written
	642	+	35 request for coverage after receiving all required disclosures.
	643	+	36 (v) If debt cancellation coverage for two (2) or more events is
	644	+	37 provided for in a single charge under a debt cancellation
	645	+	38 agreement, the entire charge may be excluded from the loan
	646	+	39 finance charge and imposed as an additional charge under this
	647	+	40 section if at least one (1) of the events is the loss of life, health,
	648	+	41 or income.
	649	+	42 The additional charges provided for in subdivisions (f) through (j) are
	650	+	ES 383—LS 6690/DI 101 15
	651	+	1 not subject to refund or rebate.
	652	+	2 (2) An additional charge may be made for insurance in connection
	653	+	3 with the loan, other than insurance protecting the lender against the
	654	+	4 debtor's default or other credit loss:
	655	+	5 (a) with respect to insurance against loss of or damage to property
	656	+	6 or against liability, if the lender furnishes a clear and specific
	657	+	7 statement in writing to the debtor, setting forth the cost of the
	658	+	8 insurance if obtained from or through the lender and stating that
	659	+	9 the debtor may choose the person, subject to the lender's
	660	+	10 reasonable approval, through whom the insurance is to be
	661	+	11 obtained; and
	662	+	12 (b) with respect to consumer credit insurance providing life,
	663	+	13 accident, unemployment or other loss of income, or health
	664	+	14 coverage, if the insurance coverage is not a factor in the approval
	665	+	15 by the lender of the extension of credit and this fact is clearly
	666	+	16 disclosed in writing to the debtor, and if, in order to obtain the
	667	+	17 insurance in connection with the extension of credit, the debtor
	668	+	18 gives specific affirmative written indication of the desire to do so
	669	+	19 after written disclosure of the cost of the insurance.
	670	+	20 (3) An additional charge may be made for a GAP agreement, subject
	671	+	21 to the following:
	672	+	22 (a) A GAP agreement or GAP coverage may not be required by
	673	+	23 the lender, and that fact must be disclosed in writing to the
	674	+	24 consumer.
	675	+	25 (b) The charge for the initial term of coverage under the GAP
	676	+	26 agreement must be disclosed in writing to the consumer. The
	677	+	27 charge may be disclosed on a unit-cost basis only in the case of
	678	+	28 the following transactions:
	679	+	29 (i) Revolving loan accounts.
	680	+	30 (ii) Closed-end credit transactions, if the request for coverage
	681	+	31 is made by mail or telephone.
	682	+	32 (iii) Closed-end credit transactions, if the GAP agreement
	683	+	33 limits the total amount of indebtedness eligible for coverage.
	684	+	34 (c) If the term of coverage under the GAP agreement is less than
	685	+	35 the term of the consumer loan, the term of coverage under the
	686	+	36 GAP agreement must be disclosed in writing to the consumer.
	687	+	37 (d) The consumer must sign or initial an affirmative written
	688	+	38 request for coverage after receiving all required disclosures.
	689	+	39 (e) The GAP agreement must include the following:
	690	+	40 (i) In the case of GAP coverage for a new motor vehicle, the
	691	+	41 manufacturer's suggested retail price (MSRP) for the motor
	692	+	42 vehicle.
	693	+	ES 383—LS 6690/DI 101 16
	694	+	1 (ii) In the case of GAP coverage for a used motor vehicle, the
	695	+	2 National Automobile Dealers Association (NADA) average
	696	+	3 retail value for the motor vehicle, as determined by use of a
	697	+	4 third party valuation service provider that is customarily
	698	+	5 relied upon in the used motor vehicle commercial
	699	+	6 marketplace.
	700	+	7 (iii) The name of the financing entity taking assignment of the
	701	+	8 agreement, as applicable.
	702	+	9 (iv) The name and address of the consumer.
	703	+	10 (v) The name of the lender selling the agreement.
	704	+	11 (vi) Information advising the consumer that the consumer may
	705	+	12 be able to obtain similar coverage from the consumer's primary
	706	+	13 insurance carrier.
	707	+	14 (vii) A coverage provision that includes a minimum deductible
	708	+	15 of five hundred dollars ($500).
	709	+	16 (viii) A provision providing for a minimum thirty (30) day trial
	710	+	17 period.
	711	+	18 (ix) In the case of a consumer loan made with respect to a
	712	+	19 motor vehicle, a provision excluding the sale of GAP coverage
	713	+	20 if the amount financed under the consumer loan (not including
	714	+	21 the cost of the GAP agreement, the cost of any credit
	715	+	22 insurance, and the cost of any warranties or service
	716	+	23 agreements) is less than eighty percent (80%) of the
	717	+	24 manufacturer's suggested retail price (MSRP), in the case of a
	718	+	25 new motor vehicle, or of the National Automobile Dealers
	719	+	26 Association (NADA) average retail value (as determined by
	720	+	27 use of a third party valuation service provider that is
	721	+	28 customarily relied upon in the used motor vehicle
	722	+	29 commercial marketplace), in the case of a used motor
	723	+	30 vehicle.
	724	+	31 (x) In the case of a GAP agreement in which the charge for the
	725	+	32 agreement exceeds four hundred dollars ($400), specific
	726	+	33 instructions that may be used by the consumer to cancel the
	727	+	34 agreement and obtain a refund of the unearned GAP charge
	728	+	35 before prepayment in full, in accordance with the procedures,
	729	+	36 and subject to the conditions, set forth in subdivision (f).
	730	+	37 (f) If the charge for the GAP agreement exceeds four hundred
	731	+	38 dollars ($400), the consumer is entitled to cancel the agreement
	732	+	39 and obtain a refund of the unearned GAP charge before
	733	+	40 prepayment in full. Refunds of unearned GAP charges shall be
	734	+	41 made subject to the following conditions:
	735	+	42 (i) A refund of the charge for a GAP agreement must be
	736	+	ES 383—LS 6690/DI 101 17
	737	+	1 calculated using a method that is no less favorable to the
	738	+	2 consumer than a refund calculated on a pro rata basis.
	739	+	3 (ii) The consumer is entitled to a refund of the unearned GAP
	740	+	4 agreement charge as outlined in the GAP agreement.
	741	+	5 (iii) The seller of the GAP agreement, or the seller's assignee,
	742	+	6 is responsible for making a timely refund to the consumer of
	743	+	7 unearned GAP agreement charges under the terms and
	744	+	8 conditions of the GAP agreement.
	745	+	9 (g) Upon prepayment in full of the consumer loan:
	746	+	10 (i) the GAP coverage is automatically terminated; and
	747	+	11 (ii) the seller of the GAP agreement must issue a refund in
	748	+	12 accordance with subdivision (f).
	749	+	13 (h) A lender that sells GAP agreements must:
	750	+	14 (i) insure its GAP agreement obligations under a contractual
	751	+	15 liability insurance policy issued by an insurer authorized to
	752	+	16 engage in the insurance business in Indiana; and
	753	+	17 (ii) retain appropriate records, as required under this article,
	754	+	18 regarding GAP agreements sold, refunded, and expired.
	755	+	19 (4) As used in this section, "debt cancellation agreement" means an
	756	+	20 agreement that provides coverage for payment or satisfaction of all or
	757	+	21 part of a debt in the event of the loss of life, health, or income. The
	758	+	22 term does not include a GAP agreement.
	759	+	23 (5) As used in this section, "expedited payment service" means a
	760	+	24 service offered to a consumer to ensure that a payment made by the
	761	+	25 consumer with respect to a consumer loan will be reflected as paid and
	762	+	26 posted on an expedited basis.
	763	+	27 (6) As used in this section:
	764	+	28 (a) "guaranteed asset protection agreement";
	765	+	29 (b) "guaranteed auto protection agreement"; or
	766	+	30 (c) "GAP agreement";
	767	+	31 means, with respect to consumer loans involving motor vehicles or
	768	+	32 other titled assets, an agreement in which the lender agrees to cancel
	769	+	33 or waive all or part of the outstanding debt after all property insurance
	770	+	34 benefits have been exhausted after the occurrence of a specified event.
	771	+	35 (7) As used in this section, "skip-a-payment service" means a
	772	+	36 service that:
	773	+	37 (a) is offered by a lender to a consumer; and
	774	+	38 (b) permits the consumer to miss or skip a payment due under a
	775	+	39 consumer loan without resulting in default.
	776	+	40 SECTION 6. IC 24-4.5-3-508, AS AMENDED BY P.L.85-2020,
	777	+	41 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	778	+	42 UPON PASSAGE]: Sec. 508. Loan Finance Charge for Supervised
	779	+	ES 383—LS 6690/DI 101 18
	780	+	1 Loans ) (1) With respect to a supervised loan, including a loan
	781	+	2 pursuant to a revolving loan account, a supervised lender may contract
	782	+	3 for and receive a loan finance charge not exceeding that permitted by
	783	+	4 this section.
	784	+	5 (2) The loan finance charge, calculated according to the actuarial
	785	+	6 method, may not exceed the equivalent of the greater of:
	786	+	7 (a) the total of:
	787	+	8 (i) thirty-six percent (36%) per year on that part of the unpaid
	788	+	9 balances of the principal (as defined in section 107(3) of this
	789	+	10 chapter) which is two thousand dollars ($2,000) or less;
	790	+	11 (ii) twenty-one percent (21%) per year on that part of the
	791	+	12 unpaid balances of the principal (as defined in section 107(3)
	792	+	13 of this chapter) which is more than two thousand dollars
	793	+	14 ($2,000) but does not exceed four thousand dollars ($4,000);
	794	+	15 and
	795	+	16 (iii) fifteen percent (15%) per year on that part of the unpaid
	796	+	17 balances of the principal (as defined in section 107(3) of this
	797	+	18 chapter) which is more than four thousand dollars ($4,000); or
	798	+	19 (b) twenty-five percent (25%) per year on the unpaid balances of
	799	+	20 the principal (as defined in section 107(3) of this chapter).
	800	+	21 (3) In the case of a loan agreement entered into before July 1, 2020,
	801	+	22 this section does not limit or restrict the manner of contracting for the
	802	+	23 loan finance charge, whether by way of add-on, discount, or otherwise,
	803	+	24 so long as the rate of the loan finance charge does not exceed that
	804	+	25 permitted by this section. If the loan is precomputed:
	805	+	26 (a) the loan finance charge may be calculated on the assumption
	806	+	27 that all scheduled payments will be made when due; and
	807	+	28 (b) the effect of prepayment is governed by the provisions on
	808	+	29 rebate upon prepayment in section 210 of this chapter.
	809	+	30 After June 30, 2020, a loan agreement may not be entered into for a
	810	+	31 precomputed supervised loan. The loan finance charge authorized by
	811	+	32 this section must be contracted for between the lender and the
	812	+	33 debtor, and must be calculated by applying a rate not exceeding the
	813	+	34 rate set forth in subsection (2) to unpaid balances of the principal
	814	+	35 (as defined in section 107(3) of this chapter).
	815	+	36 (4) The term of a loan for the purposes of this section commences
	816	+	37 on the date the loan is made. Differences in the lengths of months are
	817	+	38 disregarded, and a day may be counted as one-thirtieth (1/30) of a
	818	+	39 month. Subject to classifications and differentiations the lender may
	819	+	40 reasonably establish, a part of a month in excess of fifteen (15) days
	820	+	41 may be treated as a full month if periods of fifteen (15) days or less are
	821	+	42 disregarded and that procedure is not consistently used to obtain a
	822	+	ES 383—LS 6690/DI 101 19
	823	+	1 greater yield than would otherwise be permitted.
	824	+	2 (5) Subject to classifications and differentiations the lender may
	825	+	3 reasonably establish, the lender may make the same loan finance
	826	+	4 charge on all principal amounts within a specified range. A loan
	827	+	5 finance charge does not violate subsection (2) if:
	828	+	6 (a) when applied to the median amount within each range, it does
	829	+	7 not exceed the maximum permitted in subsection (2); and
	830	+	8 (b) when applied to the lowest amount within each range, it does
	831	+	9 not produce a rate of loan finance charge exceeding the rate
	832	+	10 calculated according to subdivision (a) by more than eight percent
	833	+	11 (8%) of the rate calculated according to subdivision (a).
	834	+	12 (6) The amounts of two thousand dollars ($2,000) and four thousand
	835	+	13 dollars ($4,000) in subsection (2) and thirty dollars ($30) in subsection
	836	+	14 (7) are subject to change pursuant to the provisions on adjustment of
	837	+	15 dollar amounts (IC 24-4.5-1-106). However, notwithstanding
	838	+	16 IC 24-4.5-1-106(1), for the adjustment of the amount of thirty dollars
	839	+	17 ($30), the Reference Base Index to be used is the Index for October
	840	+	18 1992. Notwithstanding IC 24-4.5-1-106(1), for the adjustment of the
	841	+	19 amounts of two thousand dollars ($2,000) and four thousand dollars
	842	+	20 ($4,000), the Reference Base Index to be used is the Index for October
	843	+	21 2012.
	844	+	22 (7) With respect to a supervised loan not made pursuant to a
	845	+	23 revolving loan account, the lender may contract for and receive a
	846	+	24 minimum loan finance charge of not more than thirty dollars ($30). The
	847	+	25 minimum loan finance charge allowed under this subsection may be
	848	+	26 imposed only if the lender does not assess a nonrefundable prepaid
	849	+	27 finance charge under subsection (8) and:
	850	+	28 (a) the debtor prepays in full a consumer loan, refinancing, or
	851	+	29 consolidation, regardless of whether the loan, refinancing, or
	852	+	30 consolidation is precomputed;
	853	+	31 (b) the loan, refinancing, or consolidation prepaid by the debtor
	854	+	32 is subject to a loan finance charge that:
	855	+	33 (i) is contracted for by the parties; and
	856	+	34 (ii) does not exceed the rate prescribed in subsection (2); and
	857	+	35 (c) the loan finance charge earned at the time of prepayment is
	858	+	36 less than the minimum loan finance charge contracted for under
	859	+	37 this subsection.
	860	+	38 (8) Except as provided in subsections (7) and (10)(c), in addition to
	861	+	39 the loan finance charge provided for in this section and to any other
	862	+	40 charges and fees permitted by this chapter, the lender may contract for
	863	+	41 and receive a nonrefundable prepaid finance charge of not more than
	864	+	42 fifty dollars ($50) if the loan agreement is entered into before July 1,
	865	+	ES 383—LS 6690/DI 101 20
	866	+	1 2020. If the loan agreement is entered into after June 30, 2020, not
	867	+	2 more than the following:
	868	+	3 (a) Seventy-five dollars ($75), in the case of a loan agreement for
	869	+	4 a principal amount which is two thousand dollars ($2,000) or less.
	870	+	5 (b) One hundred fifty dollars ($150) in the case of a loan
	871	+	6 agreement for a principal amount which is more than two
	872	+	7 thousand dollars ($2,000) but does not exceed four thousand
	873	+	8 dollars ($4,000).
	874	+	9 (c) Two hundred dollars ($200) in the case of a loan agreement
	875	+	10 for a principal amount which is more than four thousand dollars
	876	+	11 ($4,000).
	877	+	12 The amounts in this subsection are not subject to change under
	878	+	13 IC 24-4.5-1-106.
	879	+	14 (9) The nonrefundable prepaid finance charge provided for in
	880	+	15 subsection (8) is not subject to refund or rebate. However, for any
	881	+	16 supervised loan entered into after June 30, 2020, any amount charged
	882	+	17 by the lender, other than by a lender that is a depository institution (as
	883	+	18 defined in IC 24-4.5-1-301.5(12)), under subsection (8) that exceeds
	884	+	19 the applicable amount permitted by subsection (8) constitutes a
	885	+	20 violation of this article under IC 24-4.5-6-107.5(l) and is subject to
	886	+	21 refund. Any amount charged by a depository institution (as defined in
	887	+	22 IC 24-4.5-1-301.5(12)) under subsection (8) that exceeds the applicable
	888	+	23 amount set forth in subsection (8) is subject to refund.
	889	+	24 (10) Notwithstanding subsections (8) and (9), in the case of a
	890	+	25 supervised loan that is not secured by an interest in land, if a lender
	891	+	26 retains any part of a nonrefundable prepaid finance charge charged on
	892	+	27 a loan that is paid in full by a new loan from the same lender, the
	893	+	28 following apply:
	894	+	29 (a) If the loan is paid in full by the new loan within three (3)
	895	+	30 months after the date of the prior loan, the lender may not charge
	896	+	31 a nonrefundable prepaid finance charge on the new loan, or, in the
	897	+	32 case of a revolving loan, on the increased credit line.
	898	+	33 (b) The lender may not assess more than two (2) nonrefundable
	899	+	34 prepaid finance charges in any twelve (12) month period.
	900	+	35 (c) Subject to subdivisions (a) and (b), if a supervised loan that is
	901	+	36 entered into by a lender and a debtor before July 1, 2020, is paid
	902	+	37 in full by a new loan from the same lender after June 30, 2020, the
	903	+	38 lender may contract for and receive a nonrefundable prepaid
	904	+	39 finance charge in the amount set forth in subsection (8) for loan
	905	+	40 agreements entered into after June 30, 2020.
	906	+	41 (11) In the case of a supervised loan that is secured by an interest in
	907	+	42 land, this section does not prohibit a lender from contracting for and
	908	+	ES 383—LS 6690/DI 101 21
	909	+	1 receiving a fee for preparing deeds, mortgages, reconveyances, and
	910	+	2 similar documents under section 202(1)(d)(ii) of this chapter, in
	911	+	3 addition to the nonrefundable prepaid finance charge provided for in
	912	+	4 subsection (8).
	913	+	5 SECTION 7. IC 24-7-3-3, AS AMENDED BY P.L.69-2018,
	914	+	6 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	915	+	7 JULY 1, 2022]: Sec. 3. The lessor shall disclose the following:
	916	+	8 (1) A brief description of the property sufficient to identify the
	917	+	9 property to the lessee and lessor.
	918	+	10 (2) The total number, total amount, and timing of all rental
	919	+	11 payments necessary to acquire ownership of the property,
	920	+	12 including:
	921	+	13 (A) any initial payment, less any:
	922	+	14 (i) optional liability waiver fees under IC 24-7-5-11; and
	923	+	15 (ii) optional products and services offered
	924	+	16 contemporaneously with the rental purchase agreement
	925	+	17 under IC 24-7-8-6; and
	926	+	18 (iii) security deposit, if required;
	927	+	19 (B) all regular rental payments; and
	928	+	20 (C) taxes paid to or through the lessor.
	929	+	21 (3) A statement that the lessee will not own the property until the
	930	+	22 lessee has:
	931	+	23 (A) made all regular rental payments, as well as any initial
	932	+	24 rental payment, necessary to acquire ownership of the
	933	+	25 property; or
	934	+	26 (B) exercised an early purchase option.
	935	+	27 (4) A statement that charges in addition to the total rental
	936	+	28 payments necessary to acquire ownership of the leased property
	937	+	29 may be imposed under the agreement and that the lessee should
	938	+	30 read the contract for an explanation of these charges.
	939	+	31 (5) A brief explanation of all additional charges that may be
	940	+	32 imposed under the agreement. If a security deposit is required, the
	941	+	33 explanation must include an explanation of the conditions under
	942	+	34 which the deposit will be returned to the lessee.
	943	+	35 (6) A statement indicating who is responsible for property if it is
	944	+	36 lost, stolen, damaged, or destroyed.
	945	+	37 (7) A statement indicating that the value of lost, stolen, damaged,
	946	+	38 or destroyed property is its fair market value on the date that it is
	947	+	39 lost, stolen, damaged, or destroyed.
	948	+	40 (8) A statement indicating whether the property is new or used.
	949	+	41 However, property that is new may be described as used.
	950	+	42 (9) A statement that the lessee has an early purchase option to
	951	+	ES 383—LS 6690/DI 101 22
	952	+	1 purchase the property at any time during the period that the rental
	953	+	2 purchase agreement is in effect. The statement must specify the
	954	+	3 price or the formula or other method for determining the price at
	955	+	4 which the property may be purchased.
	956	+	5 (10) A brief explanation of the lessee's right to reinstate a rental
	957	+	6 purchase agreement and a description of the amount, or method
	958	+	7 of determining the amount, of any penalty or other charge
	959	+	8 applicable under IC 24-7-5 to the reinstatement of a rental
	960	+	9 purchase agreement.
	961	+	10 (11) An itemization of all charges and fees included in any initial
	962	+	11 rental payment.
	963	+	12 SECTION 8. IC 24-7-7-1, AS AMENDED BY P.L.69-2018,
	964	+	13 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	965	+	14 JULY 1, 2022]: Sec. 1. (a) The department shall enforce this article. To
	966	+	15 carry out this responsibility, the department may do the following:
	967	+	16 (1) Receive and act on complaints, take action designed to obtain
	968	+	17 voluntary compliance with this article, or commence proceedings
	969	+	18 on the department's own initiative.
	970	+	19 (2) Issue and enforce administrative orders under IC 4-21.5.
	971	+	20 (3) Counsel persons and groups on their rights and duties under
	972	+	21 this article.
	973	+	22 (4) Establish programs for the education of consumers with
	974	+	23 respect to rental purchase agreement practices and problems.
	975	+	24 (5) Make studies appropriate to effectuate the purposes and
	976	+	25 policies of this article and make the results available to the public.
	977	+	26 (6) Adopt rules under IC 4-22-2, including emergency rules under
	978	+	27 IC 4-22-2-37.1, to carry out this article.
	979	+	28 (7) Maintain more than one (1) office within Indiana.
	980	+	29 (8) Bring a civil action to restrain a person from violating this
	981	+	30 article and for other appropriate relief, and exercise the same
	982	+	31 enforcement powers provided under IC 24-4.5-6-108.
	983	+	32 (9) Require a lessor to refund to the lessee any overcharges
	984	+	33 resulting from the lessor's noncompliance with:
	985	+	34 (A) the terms of a rental purchase agreement; or
	986	+	35 (B) this article, or any order or rule issued or adopted by
	987	+	36 the department under this article.
	988	+	37 (b) If the department determines, after notice and an opportunity to
	989	+	38 be heard, that a person has violated this article, or any order or rule
	990	+	39 issued or adopted by the department under this article, the
	991	+	40 department may, in addition to or instead of all other remedies
	992	+	41 available under this section, impose upon the person a civil penalty not
	993	+	42 greater than ten thousand dollars ($10,000) per violation.
	994	+	ES 383—LS 6690/DI 101 23
	995	+	1 SECTION 9. IC 28-1-2-30, AS AMENDED BY P.L.136-2018,
	996	+	2 SECTION 205, IS AMENDED TO READ AS FOLLOWS
	997	+	3 [EFFECTIVE UPON PASSAGE]: Sec. 30. (a) As used in this section,
	998	+	4 "financial institution" means any bank, trust company, corporate
	999	+	5 fiduciary, savings association, credit union, savings bank, bank of
	1000	+	6 discount and deposit, or industrial loan and investment company
	1001	+	7 organized or reorganized under the laws of this state, and includes
	1002	+	8 licensees and registrants under IC 24-4.4, IC 24-4.5, IC 24-7,
	1003	+	9 IC 24-12, IC 28-1-29, IC 28-7-5, IC 28-8-4, IC 28-8-5, and 750
	1004	+	10 IAC 9.
	1005	+	11 (b) Except as otherwise provided, a member of the department or
	1006	+	12 the director or deputy, assistant, or any other person having access to
	1007	+	13 any such information may not disclose to any person, other than
	1008	+	14 officially to the department, by the report made to it, or to the board of
	1009	+	15 directors, partners, or owners, or in compliance with the order of a
	1010	+	16 court, the names of the depositors or shareholders in any financial
	1011	+	17 institution, or the amount of money on deposit in any financial
	1012	+	18 institution at any time in favor of any depositor, or any other
	1013	+	19 information concerning the affairs of any such financial institution.
	1014	+	20 SECTION 10. IC 28-7-1-31, AS AMENDED BY P.L.35-2010,
	1015	+	21 SECTION 167, IS AMENDED TO READ AS FOLLOWS
	1016	+	22 [EFFECTIVE JULY 1, 2022]: Sec. 31. Every credit union shall make
	1017	+	23 provisions for adequate fidelity coverage for all directors, officers, and
	1018	+	24 employees having access to money or bonds of the credit union. The
	1019	+	25 amount and form of fidelity coverage must be approved annually by
	1020	+	26 the board of directors of the credit union. Coverage may be provided:
	1021	+	27 (1) in the form of a blanket fidelity bond issued by a corporate
	1022	+	28 surety authorized to transact business in Indiana; or
	1023	+	29 (2) through the establishment of a separate reserve fund within
	1024	+	30 the credit union for that purpose.
	1025	+	31 SECTION 11. IC 28-8-4-15, AS AMENDED BY P.L.129-2020,
	1026	+	32 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1027	+	33 JULY 1, 2022]: Sec. 15. (a) As used in this chapter, "payment
	1028	+	34 instrument" means:
	1029	+	35 (1) a check;
	1030	+	36 (2) a draft;
	1031	+	37 (3) a money order;
	1032	+	38 (4) a traveler's check;
	1033	+	39 (5) a stored value card, or stored value account, other than a
	1034	+	40 closed system stored value card; or
	1035	+	41 (6) an instrument or written order for the transmission or payment
	1036	+	42 of money;
	1037	+	ES 383—LS 6690/DI 101 24
	1038	+	1 sold or issued to one (1) or more persons, whether such instrument is
	1039	+	2 negotiable.
	1040	+	3 (b) As used in this chapter, "payment instrument" does not include:
	1041	+	4 (1) a credit card voucher;
	1042	+	5 (2) a letter of credit;
	1043	+	6 (3) an instrument that is redeemable by the issuer in goods or
	1044	+	7 services; or
	1045	+	8 (4) a closed system stored value card.
	1046	+	9 SECTION 12. IC 28-8-4-19.5, AS AMENDED BY P.L.32-2021,
	1047	+	10 SECTION 86, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1048	+	11 JULY 1, 2022]: Sec. 19.5. As used in this chapter, "stored value
	1049	+	12 account" or "stored value card" means any account, a card or device
	1050	+	13 that:
	1051	+	14 (1) may be used by a holder to:
	1052	+	15 (A) perform financial transactions; or
	1053	+	16 (B) obtain, purchase, or receive money, goods, or services;
	1054	+	17 in an amount or having a value that does not exceed the dollar
	1055	+	18 value of the account, card; or device; and
	1056	+	19 (2) either:
	1057	+	20 (A) in the case of a card or similar device, has a magnetic
	1058	+	21 stripe or computer chip that enables dollar values to be
	1059	+	22 electronically added to or deducted from the dollar value of the
	1060	+	23 card. or
	1061	+	24 (B) in the case of an account, uses an account number unique
	1062	+	25 to the holder for the purposes set forth in subdivision (1).
	1063	+	26 SECTION 13. IC 28-10-1-1, AS AMENDED BY P.L.54-2021,
	1064	+	27 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1065	+	28 JULY 1, 2022]: Sec. 1. A reference to a federal law or federal
	1066	+	29 regulation in this title is a reference to the law or regulation as in effect
	1067	+	30 December 31, 2020. 2021.
	1068	+	31 SECTION 14. IC 28-15-1-11 IS AMENDED TO READ AS
	1069	+	32 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. "Savings
	1070	+	33 association" means any:
	1071	+	34 (1) building and loan association;
	1072	+	35 (2) savings and loan association;
	1073	+	36 (3) rural loan and savings association; or
	1074	+	37 (4) guaranty loan and savings association;
	1075	+	38 organized or reorganized and operating under the laws of Indiana, any
	1076	+	39 other state, or the United States, whether in stock or mutual form.
	1077	+	40 SECTION 15. IC 28-15-10-3 IS AMENDED TO READ AS
	1078	+	41 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. As used in this
	1079	+	42 chapter, "Indiana savings association" means:
	1080	+	ES 383—LS 6690/DI 101 25
	1081	+	1 (1) a savings association whose home office is located in Indiana;
	1082	+	2 or
	1083	+	3 (2) a federal savings and loan association whose home office is
	1084	+	4 located in Indiana.
	1085	+	5 SECTION 16. IC 28-15-14-1, AS AMENDED BY P.L.27-2012,
	1086	+	6 SECTION 118, IS AMENDED TO READ AS FOLLOWS
	1087	+	7 [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) A savings association
	1088	+	8 may be:
	1089	+	9 (1) merged or consolidated with; or
	1090	+	10 (2) converted into;
	1091	+	11 a federal savings and loan association, under the charter of the federal
	1092	+	12 savings and loan association or under a new charter issued to the
	1093	+	13 converted association or the merged or consolidated association, upon
	1094	+	14 a vote of fifty-one percent (51%) or more of the votes cast at a legal
	1095	+	15 meeting of the shareholders and members of the state chartered savings
	1096	+	16 association called to consider the proposed merger, consolidation, or
	1097	+	17 conversion.
	1098	+	18 (b) A merger, consolidation, or conversion under this section must
	1099	+	19 be accomplished:
	1100	+	20 (1) in compliance with the laws of the United States relating to
	1101	+	21 the merger, consolidation, or conversion; and
	1102	+	22 (2) upon terms and conditions prescribed or approved by the
	1103	+	23 Office of the Comptroller of the Currency or its successor.
	1104	+	24 SECTION 17. IC 28-15-14-2 IS AMENDED TO READ AS
	1105	+	25 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) If a savings
	1106	+	26 association:
	1107	+	27 (1) merges with;
	1108	+	28 (2) consolidates with; or
	1109	+	29 (3) is converted into;
	1110	+	30 a federal savings and loan association, the savings association shall file
	1111	+	31 with the secretary of state three (3) copies of a certificate executed by
	1112	+	32 a duly constituted federal authority showing the merger, consolidation,
	1113	+	33 or conversion.
	1114	+	34 (b) Upon the payment of the fees prescribed by law, the secretary of
	1115	+	35 state shall:
	1116	+	36 (1) note the filing upon each of the copies;
	1117	+	37 (2) retain one (1) copy in the secretary's office; and
	1118	+	38 (3) return two (2) copies to the association.
	1119	+	39 (c) One (1) of the copies returned to a savings association under
	1120	+	40 subsection (b) shall be filed by the savings association with the
	1121	+	41 department and the other copy shall be filed with the recorder of the
	1122	+	42 county in which the principal office of the savings association is
	1123	+	ES 383—LS 6690/DI 101 26
	1124	+	1 located.
	1125	+	2 (d) Upon completion of the filings required by this section, the
	1126	+	3 savings association ceases to be a corporation under Indiana law,
	1127	+	4 except as provided in section 4 of this chapter.
	1128	+	5 SECTION 18. IC 28-15-14-3 IS AMENDED TO READ AS
	1129	+	6 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Upon the
	1130	+	7 effective date of a merger, consolidation, or conversion under sections
	1131	+	8 1 and 2 of this chapter, all of the assets and property of the state
	1132	+	9 chartered savings association of every kind and character, including:
	1133	+	10 (1) real, personal, and mixed property;
	1134	+	11 (2) tangible and intangible property; and
	1135	+	12 (3) choses in action, rights, and credits that:
	1136	+	13 (A) the savings association owns; or
	1137	+	14 (B) would inure to the savings association;
	1138	+	15 shall immediately, by operation of law and without any conveyance or
	1139	+	16 transfer, and without any further act or deed, be vested in and become
	1140	+	17 the property of the federal savings and loan association.
	1141	+	18 (b) A federal savings and loan association referred to in subsection
	1142	+	19 (a) shall have, hold, and enjoy the assets and property of the state
	1143	+	20 chartered savings association after a merger, consolidation, or
	1144	+	21 conversion under sections 1 and 2 of this chapter in its own right, as
	1145	+	22 fully and to the same extent that the assets and property were
	1146	+	23 possessed, held, and enjoyed by the state chartered savings association
	1147	+	24 before the merger, consolidation, or conversion.
	1148	+	25 (c) After a merger, consolidation, or conversion under sections 1
	1149	+	26 and 2 of this chapter, the federal savings and loan association is
	1150	+	27 considered a continuation of the entity and identity of the state
	1151	+	28 chartered savings association, and all of the rights and obligations of
	1152	+	29 the savings association remain unimpaired.
	1153	+	30 (d) The federal association, at the time of the taking effect of the
	1154	+	31 merger, consolidation, or conversion under sections 1 and 2 of this
	1155	+	32 chapter, shall succeed to all of the rights and obligations and the duties
	1156	+	33 and liabilities connected with the state chartered savings association.
	1157	+	34 SECTION 19. IC 28-15-14-4, AS AMENDED BY P.L.27-2012,
	1158	+	35 SECTION 119, IS AMENDED TO READ AS FOLLOWS
	1159	+	36 [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Subject to regulations
	1160	+	37 prescribed by the Office of the Comptroller of the Currency or its
	1161	+	38 successor, a federal savings and loan association located in Indiana or
	1162	+	39 in any other state, by resolution approved by its board of directors and
	1163	+	40 adopted by a vote of fifty-one percent (51%) or more of the votes cast
	1164	+	41 at any annual meeting or at any special meeting of its members called
	1165	+	42 to consider the action, may convert itself into a state chartered savings
	1166	+	ES 383—LS 6690/DI 101 27
	1167	+	1 association under this article.
	1168	+	2 (b) A resolution referred to in subsection (a), when adopted by the
	1169	+	3 members of a federal savings and loan association, must:
	1170	+	4 (1) designate the names and the number of the directors who will
	1171	+	5 serve as directors of the savings association after the conversion
	1172	+	6 takes effect; and
	1173	+	7 (2) authorize the directors to execute articles of incorporation.
	1174	+	8 (c) The articles of incorporation executed under this section must
	1175	+	9 include the contents required by IC 28-12-2-1 except that, instead of
	1176	+	10 disclosing the name and address of each incorporator as required by
	1177	+	11 IC 28-12-2-1(4), the articles must:
	1178	+	12 (1) indicate that the savings association is incorporated by
	1179	+	13 conversion of a federal savings and loan association into a state
	1180	+	14 chartered savings association; and
	1181	+	15 (2) state the name of the federal savings and loan association
	1182	+	16 converted under this section.
	1183	+	17 (d) The department must receive from the federal savings and loan
	1184	+	18 association:
	1185	+	19 (1) three (3) copies of the resolution, certified by the secretary or
	1186	+	20 assistant secretary of the federal savings and loan association; and
	1187	+	21 (2) the articles of incorporation, in triplicate, signed and
	1188	+	22 acknowledged by the directors designated under subsection
	1189	+	23 (b)(1).
	1190	+	24 (e) The department shall approve or disapprove the proposed
	1191	+	25 conversion of a federal savings and loan association into a state
	1192	+	26 chartered savings association under this section. The department may
	1193	+	27 not approve a proposed conversion unless the department, after
	1194	+	28 appropriate investigation or examination, finds all of the following:
	1195	+	29 (1) That the state chartered savings association resulting from the
	1196	+	30 conversion will operate in a safe, sound, and prudent manner.
	1197	+	31 (2) That the proposed charter conversion will not result in a state
	1198	+	32 chartered savings association that has:
	1199	+	33 (A) inadequate capital;
	1200	+	34 (B) unsatisfactory management; or
	1201	+	35 (C) poor earnings prospects.
	1202	+	36 (3) That the management or other principals of the savings
	1203	+	37 association are qualified by character and financial responsibility
	1204	+	38 to control and operate in a legal and proper manner the proposed
	1205	+	39 state chartered savings association.
	1206	+	40 (4) That the interests of the depositors, the creditors, and the
	1207	+	41 public generally will not be jeopardized by the proposed charter
	1208	+	42 conversion.
	1209	+	ES 383—LS 6690/DI 101 28
	1210	+	1 (f) If the department approves the resolution and articles of
	1211	+	2 incorporation submitted under subsection (d), the department shall:
	1212	+	3 (1) indicate its approval on the resolution and articles of
	1213	+	4 incorporation in the manner prescribed by IC 28-12-5-1; and
	1214	+	5 (2) present the articles of incorporation to the secretary of state.
	1215	+	6 (g) If the secretary of state finds that the articles of incorporation
	1216	+	7 conform to law, the secretary of state shall:
	1217	+	8 (1) endorse the secretary's approval on the copies of the articles
	1218	+	9 of incorporation;
	1219	+	10 (2) when all fees required by law have been paid:
	1220	+	11 (A) file one (1) copy of the articles of incorporation in the
	1221	+	12 secretary's office; and
	1222	+	13 (B) issue a certificate of incorporation to the savings
	1223	+	14 association; and
	1224	+	15 (3) return the certificate of incorporation and two (2) copies of the
	1225	+	16 articles of incorporation to the directors of the savings association
	1226	+	17 designated under subsection (b)(1).
	1227	+	18 (h) The conversion of a federal savings and loan association into a
	1228	+	19 state chartered savings association under this section is effective when
	1229	+	20 the secretary of state issues the certificate of incorporation under
	1230	+	21 subsection (g). However, before the savings association may transact
	1231	+	22 business under this article or incur indebtedness, except indebtedness
	1232	+	23 that is incidental to its organization, one (1) of the copies of its articles
	1233	+	24 of incorporation bearing the endorsement of the approval of the
	1234	+	25 department and of the secretary of state must be filed for record with
	1235	+	26 the recorder of the county in which the principal office of the savings
	1236	+	27 association is located.
	1237	+	28 SECTION 20. IC 28-15-14-5 IS AMENDED TO READ AS
	1238	+	29 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Upon the
	1239	+	30 effective date of the conversion of a federal savings and loan
	1240	+	31 association into a state chartered savings association under section 4 of
	1241	+	32 this chapter, all of the assets and property of the federal savings and
	1242	+	33 loan association of every kind and character, including:
	1243	+	34 (1) real, personal, and mixed property;
	1244	+	35 (2) tangible and intangible property; and
	1245	+	36 (3) choses in action, rights, and credits that:
	1246	+	37 (A) the savings and loan association owns; or
	1247	+	38 (B) would inure to the savings and loan association;
	1248	+	39 shall immediately, by operation of law and without any conveyance or
	1249	+	40 transfer, and without any further act or deed, be vested in and become
	1250	+	41 the property of the state chartered savings association.
	1251	+	42 (b) After the conversion of a federal savings and loan association
	1252	+	ES 383—LS 6690/DI 101 29
	1253	+	1 into a state chartered savings association under section 4 of this
	1254	+	2 chapter:
	1255	+	3 (1) the state chartered savings association shall have, hold, and
	1256	+	4 enjoy the assets and property of the federal savings and loan
	1257	+	5 association in its own right, as fully and to the same extent that
	1258	+	6 the assets and property were possessed, held, and enjoyed by the
	1259	+	7 federal savings and loan association before the conversion; and
	1260	+	8 (2) the state chartered savings association is considered a
	1261	+	9 continuation of the entity and identity of the federal savings and
	1262	+	10 loan association, and all of the rights and obligations of the
	1263	+	11 federal savings and loan association remain unimpaired.
	1264	+	12 (c) When the conversion of a federal savings and loan association
	1265	+	13 into a state chartered savings association under section 4 of this chapter
	1266	+	14 takes effect, the state chartered savings association succeeds to all of
	1267	+	15 the rights and obligations and the duties and liabilities connected with
	1268	+	16 the federal savings and loan association.
	1269	+	17 SECTION 21. IC 28-15-14-6 IS AMENDED TO READ AS
	1270	+	18 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. After the
	1271	+	19 conversion of a federal savings and loan association into a state
	1272	+	20 chartered savings association under section 4 of this chapter, the
	1273	+	21 organization of the savings association shall be completed in the
	1274	+	22 manner provided by IC 28-12, except that bylaws for the savings
	1275	+	23 association:
	1276	+	24 (1) may be adopted by the members of the federal association
	1277	+	25 when the members adopt the resolution authorizing the
	1278	+	26 conversion; and
	1279	+	27 (2) may become effective upon the issuance of the certificate of
	1280	+	28 incorporation under section 4(f) 4(g) of this chapter.
	1281	+	29 SECTION 22. An emergency is declared for this act.
	1282	+	ES 383—LS 6690/DI 101 30
	1283	+	COMMITTEE REPORT
	1284	+	Madam President: The Senate Committee on Insurance and
	1285	+	Financial Institutions, to which was referred Senate Bill No. 383, has
	1286	+	had the same under consideration and begs leave to report the same
	1287	+	back to the Senate with the recommendation that said bill DO PASS.
	1288	+	(Reference is to SB 383 as introduced.)
	1289	+
	1290	+	ZAY, Chairperson
	1291	+	Committee Vote: Yeas 9, Nays 0
	1292	+	_____
	1293	+	SENATE MOTION
	1294	+	Madam President: I move that Senate Bill 383 be amended to read
	1295	+	as follows:
	1296	+	Page 1, delete line 15.
	1297	+	Delete page 2.
	1298	+	Page 3, delete lines 1 through 32.
	1299	+	Page 22, delete lines 38 through 42.
	1300	+	Delete page 23.
	1301	+	Page 24, delete lines 1 through 27.
	1302	+	Page 25, delete lines 35 through 42.
	1303	+	Delete page 26.
	1304	+	Page 27, delete lines 32 through 42.
	1305	+	Delete page 28.
	1306	+	Page 29, delete lines 1 through 22.
	1307	+	Page 29, delete line 42.
	1308	+	Delete page 30.
	1309	+	Page 31, delete lines 1 through 31.
	1310	+	Delete page 32.
	1311	+	Page 33, delete lines 1 through 32.
	1312	+	Page 34, delete lines 28 through 42.
	1313	+	Delete pages 35 through 37.
	1314	+	Page 38, delete lines 1 through 7.
	1315	+	Renumber all SECTIONS consecutively.
	1316	+	(Reference is to SB 383 as printed January 21, 2022.)
	1317	+	BASSLER
	1318	+	ES 383—LS 6690/DI 101 31
	1319	+	COMMITTEE REPORT
	1320	+	Mr. Speaker: Your Committee on Financial Institutions and
	1321	+	Insurance, to which was referred Senate Bill 383, has had the same
	1322	+	under consideration and begs leave to report the same back to the
	1323	+	House with the recommendation that said bill do pass.
	1324	+	(Reference is to SB 383 as reprinted February 1, 2022.)
	1325	+	CARBAUGH
	1326	+	Committee Vote: Yeas 11, Nays 0
	1327	+	ES 383—LS 6690/DI 101