Indiana 2023 Regular Session

Indiana Senate Bill SB0235 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 235
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 24-4.5; IC 28-7-5-28; IC 35-45-7-2.
7	7	Synopsis: Finance charge for supervised loans. Provides that for a
8	8	supervised loan that is made under the Uniform Consumer Credit Code
9	9	(UCCC) and that: (1) is entered into after June 30, 2023; and (2) is not
10	10	secured by: (A) an interest in land; or (B) personal property used or
11	11	expected to be used as the principal dwelling of the debtor; a
12	12	supervised lender may contract for and receive a loan finance charge
13	13	not exceeding 36% per year on the unpaid balances of the principal.
14	14	Retains the current blended loan finance charge (in which different
15	15	rates apply to different ranges of the unpaid balances of the principal)
16	16	for the following: (1) A supervised loan entered into before July 1,
17	17	2023. (2) A supervised loan that is secured by: (A) an interest in land;
18	18	or (B) personal property used or expected to be used as the principal
19	19	dwelling of the debtor; regardless of when the supervised loan is
20	20	entered into. Provides that, based on information contained in annual
21	21	composite reports filed with the department of financial institutions
22	22	(department) by creditors required to be licensed under the UCCC, the
23	23	department shall publish on the department's website, on an annual
24	24	basis, a report that contains specified information concerning
25	25	supervised loans made after June 30, 2023, by nondepository licensees
26	26	during the reporting period covered by the composite reports. Makes
27	27	conforming amendments to: (1) the UCCC; and (2) the statutes
28	28	governing: (A) pawnbrokers; and (B) loansharking.
29	29	Effective: July 1, 2023.
30	30	Zay
31	31	January 10, 2023, read first time and referred to Committee on Insurance and Financial
32	32	Institutions.
33	33	2023 IN 235—LS 6678/DI 101 Introduced
34	34	First Regular Session of the 123rd General Assembly (2023)
35	35	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
36	36	Constitution) is being amended, the text of the existing provision will appear in this style type,
37	37	additions will appear in this style type, and deletions will appear in this style type.
38	38	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
39	39	provision adopted), the text of the new provision will appear in this style type. Also, the
40	40	word NEW will appear in that style type in the introductory clause of each SECTION that adds
41	41	a new provision to the Indiana Code or the Indiana Constitution.
42	42	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
43	43	between statutes enacted by the 2022 Regular Session of the General Assembly.
44	44	SENATE BILL No. 235
45	45	A BILL FOR AN ACT to amend the Indiana Code concerning trade
46	46	regulation.
47	47	Be it enacted by the General Assembly of the State of Indiana:
48	48	1 SECTION 1. IC 24-4.5-3-203.5, AS AMENDED BY P.L.129-2020,
49	49	2 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
50	50	3 JULY 1, 2023]: Sec. 203.5. Delinquency Charges — (1) With respect
51	51	4 to a consumer loan, refinancing, or consolidation, the parties may
52	52	5 contract for a delinquency charge of not more than the following:
53	53	6 (a) Five dollars ($5) on any installment or minimum payment due
54	54	7 that is not paid in full not later than ten (10) days after its
55	55	8 scheduled due date, in the case of a consumer loan, refinancing,
56	56	9 or consolidation that is made before July 1, 2019. The amount of
57	57	10 five dollars ($5) in this subdivision is subject to change under
58	58	11 IC 24-4.5-1-106. In addition, the parties may provide by contract
59	59	12 for a delinquency charge that is subject to change. If the parties
60	60	13 provide by contract for a delinquency charge that is subject to
61	61	14 change, the lender shall disclose in the contract that the amount
62	62	15 of the delinquency charge is subject to change under
63	63	16 IC 24-4.5-1-106 or this section.
64	64	17 (b) In the case of a consumer loan, refinancing, or consolidation
65	65	2023 IN 235—LS 6678/DI 101 2
66	66	1 that is made after June 30, 2019, the following:
67	67	2 (i) Five dollars ($5) on any installment or minimum payment
68	68	3 due that is not paid in full not later than ten (10) days after its
69	69	4 scheduled due date, if installments under the consumer loan,
70	70	5 refinancing, or consolidation are due every fourteen (14) days
71	71	6 or less. The amount of five dollars ($5) in this clause is not
72	72	7 subject to change under IC 24-4.5-1-106.
73	73	8 (ii) Twenty-five dollars ($25) on any installment or minimum
74	74	9 payment due that is not paid in full not later than ten (10) days
75	75	10 after its scheduled due date, if installments under the
76	76	11 consumer loan, refinancing, or consolidation are due every
77	77	12 fifteen (15) days or more. The amount of twenty-five dollars
78	78	13 ($25) in this clause is not subject to change under
79	79	14 IC 24-4.5-1-106.
80	80	15 (iii) Twenty-five dollars ($25) on any installment or minimum
81	81	16 payment due that is not paid in full not later than ten (10) days
82	82	17 after its scheduled due date, in the case of a consumer loan,
83	83	18 refinancing, or consolidation that is payable in a single
84	84	19 installment that is due at least thirty (30) days after the
85	85	20 consumer loan, refinancing, or consolidation is made. The
86	86	21 amount of twenty-five dollars ($25) in this clause is not
87	87	22 subject to change under IC 24-4.5-1-106.
88	88	23 (2) A delinquency charge under this section may be collected only
89	89	24 once on an installment however long it remains in default. With regard
90	90	25 to a delinquency charge on consumer loans made under a revolving
91	91	26 loan account, the delinquency charge may be applied each month that
92	92	27 the payment is less than the minimum required payment on the
93	93	28 account. A delinquency charge may be collected any time after it
94	94	29 accrues. A delinquency charge may not be collected if:
95	95	30 (a) the installment has been deferred and a deferral charge (IC
96	96	31 24-4.5-3-204) has been paid or incurred;
97	97	32 (b) a charge for a skip-a-payment service under
98	98	33 IC 24-4.5-3-202(1)(i) has been paid or incurred, as provided in
99	99	34 IC 24-4.5-3-202(1)(i)(iii); or
100	100	35 (c) a charge for an optional expedited payment service under
101	101	36 IC 24-4.5-3-202(1)(j) has been paid or incurred, as provided in
102	102	37 IC 24-4.5-3-202(1)(j)(v).
103	103	38 (3) A creditor may not, directly or indirectly, charge or collect a
104	104	39 delinquency charge on a payment that:
105	105	40 (a) is paid not later than ten (10) days after its scheduled due date;
106	106	41 and
107	107	42 (b) is otherwise a full payment of the payment due for the
108	108	2023 IN 235—LS 6678/DI 101 3
109	109	1 applicable installment period;
110	110	2 if the only delinquency with respect to the consumer loan, refinancing,
111	111	3 or consolidation is attributable to a delinquency charge assessed on an
112	112	4 earlier installment.
113	113	5 (4) If two (2) or more installments, or parts of two (2) or more
114	114	6 installments, of a precomputed loan are in default for ten (10) days or
115	115	7 more, the lender may elect to convert the loan from a precomputed loan
116	116	8 to a loan in which the finance charge is based on unpaid balances. A
117	117	9 lender that makes this election shall make a rebate under the provisions
118	118	10 on rebates upon prepayment (IC 24-4.5-3-210) as of the maturity date
119	119	11 of the first delinquent installment, and thereafter may make a loan
120	120	12 finance charge as authorized by the provisions on loan finance charges
121	121	13 for consumer loans (IC 24-4.5-3-201) or supervised loans (IC
122	122	14 24-4.5-3-508). (section 508 or 508.1 of this chapter, as applicable).
123	123	15 The amount of the rebate shall not be reduced by the amount of any
124	124	16 permitted minimum charge (IC 24-4.5-3-210). Any deferral charges
125	125	17 made on installments due at or after the maturity date of the first
126	126	18 delinquent installment shall be rebated, and no further deferral charges
127	127	19 shall be made.
128	128	20 SECTION 2. IC 24-4.5-3-205, AS AMENDED BY P.L.85-2020,
129	129	21 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
130	130	22 JULY 1, 2023]: Sec. 205. Loan Finance Charge on Refinancing —
131	131	23 With respect to a consumer loan, refinancing, or consolidation, the
132	132	24 lender may by agreement with the debtor refinance the unpaid balance
133	133	25 and may contract for and receive a loan finance charge based on the
134	134	26 principal resulting from the refinancing at a rate not exceeding that
135	135	27 permitted by the provisions on a loan finance charge for consumer
136	136	28 loans (IC 24-4.5-3-201) or the provisions on a loan finance charge for
137	137	29 supervised loans (IC 24-4.5-3-508), (section 508 or 508.1 of this
138	138	30 chapter, as applicable), whichever is appropriate. For the purpose of
139	139	31 determining the loan finance charge permitted, the principal resulting
140	140	32 from the refinancing comprises the following:
141	141	33 (a) If:
142	142	34 (i) the transaction was not precomputed, the total of the unpaid
143	143	35 balance and the accrued charges on the date of the refinancing;
144	144	36 or
145	145	37 (ii) the transaction was precomputed, in the case of a
146	146	38 transaction entered into before July 1, 2020, the amount which
147	147	39 the debtor would have been required to pay upon prepayment
148	148	40 pursuant to the provisions on rebate upon prepayment (IC
149	149	41 24-4.5-3-210) on the date of refinancing.
150	150	42 (b) Appropriate additional charges (IC 24-4.5-3-202), payment of
151	151	2023 IN 235—LS 6678/DI 101 4
152	152	1 which is deferred.
153	153	2 SECTION 3. IC 24-4.5-3-206, AS AMENDED BY P.L.85-2020,
154	154	3 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
155	155	4 JULY 1, 2023]: Sec. 206. Loan Finance Charge on Consolidation —
156	156	5 (1) If a debtor owes an unpaid balance to a lender with respect to a
157	157	6 consumer loan, refinancing, or consolidation, and becomes obligated
158	158	7 on another consumer loan, refinancing, or consolidation with the same
159	159	8 lender, the parties may agree to a consolidation resulting in a single
160	160	9 schedule of payments. If the previous consumer loan, refinancing, or
161	161	10 consolidation was not precomputed, the parties may agree to add the
162	162	11 unpaid amount of principal and accrued charges on the date of
163	163	12 consolidation to the principal with respect to the subsequent loan. If the
164	164	13 previous consumer loan, refinancing, or consolidation was
165	165	14 precomputed, in the case of a transaction entered into before July 1,
166	166	15 2020, the parties may agree to refinance the unpaid balance pursuant
167	167	16 to the provisions on refinancing (IC 24-4.5-3-205) and to consolidate
168	168	17 the principal resulting from the refinancing by adding it to the principal
169	169	18 with respect to the subsequent loan. In either case the lender may
170	170	19 contract for and receive a loan finance charge based on the aggregate
171	171	20 principal resulting from the consolidation at a rate not in excess of that
172	172	21 permitted by the provisions on loan finance charge for consumer loans
173	173	22 (IC 24-4.5-3-201) or the provisions on loan finance charge for
174	174	23 supervised loans (IC 24-4.5-3-508), (section 508 or 508.1 of this
175	175	24 chapter, as applicable), whichever is appropriate.
176	176	25 (2) The parties may agree to consolidate the unpaid balance of a
177	177	26 consumer loan with the unpaid balance of a consumer credit sale. The
178	178	27 parties may agree to refinance the previous unpaid balance pursuant to
179	179	28 the provisions on refinancing sales (IC 24-4.5-2-205) or the provisions
180	180	29 on refinancing loans (IC 24-4.5-3-205), whichever is appropriate, and
181	181	30 to consolidate the amount financed resulting from the refinancing or
182	182	31 the principal resulting from the refinancing by adding it to the amount
183	183	32 financed or principal with respect to the subsequent sale or loan. The
184	184	33 aggregate amount resulting from the consolidation shall be deemed
185	185	34 principal, and the creditor may contract for and receive a loan finance
186	186	35 charge based on the principal at a rate not in excess of that permitted
187	187	36 by the provisions on loan finance charge for consumer loans (IC
188	188	37 24-4.5-3-201) or the provisions on loan finance charge for supervised
189	189	38 loans (IC 24-4.5-3-508), (section 508 or 508.1 of this chapter, as
190	190	39 applicable), whichever is appropriate.
191	191	40 SECTION 4. IC 24-4.5-3-208 IS AMENDED TO READ AS
192	192	41 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 208. Advances to
193	193	42 Perform Covenants of Debtor — (1) If the agreement with respect to a
194	194	2023 IN 235—LS 6678/DI 101 5
195	195	1 consumer loan, refinancing, or consolidation contains covenants by the
196	196	2 debtor to perform certain duties pertaining to insuring or preserving
197	197	3 collateral and if the lender pursuant to the agreement pays for
198	198	4 performance of the duties on behalf of the debtor, the lender may add
199	199	5 the amounts paid to the debt. Within a reasonable time after advancing
200	200	6 any sums, he shall state to the debtor in writing the amount of the sums
201	201	7 advanced, any charges with respect to this amount, and any revised
202	202	8 payment schedule and, if the duties of the debtor performed by the
203	203	9 lender pertain to insurance, a brief description of the insurance paid for
204	204	10 by the lender including the type and amount of coverages. No further
205	205	11 information need be given.
206	206	12 (2) A loan finance charge may be made for sums advanced pursuant
207	207	13 to subsection (1) at a rate not exceeding the rate stated to the debtor
208	208	14 pursuant to the provisions on disclosure (Part 3) with respect to the
209	209	15 loan, refinancing, or consolidation, except that with respect to a
210	210	16 revolving loan account the amount of the advance may be added to the
211	211	17 unpaid balance of the debt and the lender may make a loan finance
212	212	18 charge not exceeding that permitted by the provisions on loan finance
213	213	19 charge for consumer loans (24-4.5-3-201) or for supervised loans
214	214	20 (24-4.5-3-508), (section 508 or 508.1 of this chapter, as applicable),
215	215	21 whichever is appropriate.
216	216	22 SECTION 5. IC 24-4.5-3-210, AS AMENDED BY P.L.85-2020,
217	217	23 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
218	218	24 JULY 1, 2023]: Sec. 210. Rebate upon Prepayment — (1) Except for
219	219	25 subsections (2) and (9), this section applies only to a loan agreement
220	220	26 entered into before July 1, 2020. Except as provided in subsection (2),
221	221	27 upon prepayment in full of the unpaid balance of a precomputed
222	222	28 consumer loan, refinancing, or consolidation, an amount not less than
223	223	29 the unearned portion of the loan finance charge calculated according
224	224	30 to this section shall be rebated to the debtor. If the rebate otherwise
225	225	31 required is less than one dollar ($1), no rebate need be made.
226	226	32 (2) Upon prepayment in full of a consumer loan, refinancing, or
227	227	33 consolidation, other than one (1) under a revolving loan account, if the
228	228	34 loan finance charge earned is less than any permitted minimum loan
229	229	35 finance charge (IC 24-4.5-3-201(7), or IC 24-4.5-3-508(7))
230	230	36 IC 24-4.5-3-508(7), or IC 24-4.5-3-508.1(5), as applicable)
231	231	37 contracted for, whether or not the consumer loan, refinancing, or
232	232	38 consolidation is precomputed, the lender may collect or retain the
233	233	39 minimum loan finance charge, as if earned, not exceeding the loan
234	234	40 finance charge contracted for.
235	235	41 (3) The unearned portion of the loan finance charge is a fraction of
236	236	42 the loan finance charge of which the numerator is the sum of the
237	237	2023 IN 235—LS 6678/DI 101 6
238	238	1 periodic balances scheduled to follow the computational period in
239	239	2 which prepayment occurs, and the denominator is the sum of all
240	240	3 periodic balances under either the loan agreement or, if the balance
241	241	4 owing resulted from a refinancing (IC 24-4.5-3-205) or a consolidation
242	242	5 (IC 24-4.5-3-206), under the refinancing agreement or consolidation
243	243	6 agreement.
244	244	7 (4) In this section:
245	245	8 (a) "periodic balance" means the amount scheduled to be
246	246	9 outstanding on the last day of a computational period before
247	247	10 deducting the payment, if any, scheduled to be made on that day;
248	248	11 (b) "computation period" means one (1) month if one-half (1/2)
249	249	12 or more of the intervals between scheduled payments under the
250	250	13 agreement is one (1) month or more, and otherwise means one (1)
251	251	14 week;
252	252	15 (c) the "interval" to the due date of the first scheduled installment
253	253	16 or the final scheduled payment date is measured from the date of
254	254	17 a loan, refinancing, or consolidation, and includes either the first
255	255	18 or last day of the interval; and
256	256	19 (d) if the interval to the due date of the first scheduled installment
257	257	20 does not exceed one (1) month by more than fifteen (15) days
258	258	21 when the computational period is one (1) month, or eleven (11)
259	259	22 days when the computational period is one (1) week, the interval
260	260	23 shall be considered as one (1) computational period.
261	261	24 (5) This subsection applies only if the schedule of payments is not
262	262	25 regular.
263	263	26 (a) If the computational period is one (1) month and:
264	264	27 (i) if the number of days in the interval to the due date of the
265	265	28 first scheduled installment is less than one (1) month by more
266	266	29 than five (5) days, or more than one (1) month by more than
267	267	30 five (5) but not more than fifteen (15) days, the unearned loan
268	268	31 finance charge shall be increased by an adjustment for each
269	269	32 day by which the interval is less than one (1) month and, at the
270	270	33 option of the lender, may be reduced by an adjustment for each
271	271	34 day by which the interval is more than one (1) month; the
272	272	35 adjustment for each day shall be one-thirtieth (1/30) of that
273	273	36 part of the loan finance charge earned in the computational
274	274	37 period prior to the due date of the first scheduled installment
275	275	38 assuming that period to be one (1) month; and
276	276	39 (ii) if the interval to the final scheduled payment date is a
277	277	40 number of computational periods plus an additional number of
278	278	41 days less than a full month, the additional number of days shall
279	279	42 be considered a computational period only if sixteen (16) days
280	280	2023 IN 235—LS 6678/DI 101 7
281	281	1 or more. This clause applies whether or not clause (i) applies.
282	282	2 (b) Notwithstanding subdivision (a), if the computational period
283	283	3 is one (1) month, the number of days in the interval to the due
284	284	4 date of the first installment exceeds one (1) month by not more
285	285	5 than fifteen (15) days, and the schedule of payments is otherwise
286	286	6 regular, the lender, at the lender's option, may exclude the extra
287	287	7 days and the charge for the extra days in computing the unearned
288	288	8 loan finance charge; but if the lender does so and a rebate is
289	289	9 required before the due date of the first scheduled installment, the
290	290	10 lender shall compute the earned charge for each elapsed day as
291	291	11 one-thirtieth (1/30) of the amount the earned charge would have
292	292	12 been if the first interval had been one (1) month.
293	293	13 (c) If the computational period is one (1) week and:
294	294	14 (i) if the number of days in the interval to the due date of the
295	295	15 first scheduled installment is less than five (5) days, or more
296	296	16 than nine (9) days, but not more than eleven (11) days, the
297	297	17 unearned loan finance charge shall be increased by an
298	298	18 adjustment for each day by which the interval is less than
299	299	19 seven (7) days and, at the option of the lender, may be reduced
300	300	20 by an adjustment for each day by which the interval is more
301	301	21 than seven (7) days; the adjustment for each day shall be
302	302	22 one-seventh (1/7) of that part of the loan finance charge earned
303	303	23 in the computational period prior to the due date of the first
304	304	24 scheduled installment, assuming that period to be one (1)
305	305	25 week; and
306	306	26 (ii) if the interval to the final scheduled payment date is a
307	307	27 number of computational periods plus an additional number of
308	308	28 days less than a full week, the additional number of days shall
309	309	29 be considered a computational period only if five (5) days or
310	310	30 more. This clause applies whether or not clause (i) applies.
311	311	31 (6) If a deferral (IC 24-4.5-3-204) has been agreed to, the unearned
312	312	32 portion of the loan finance charge shall be computed without regard to
313	313	33 the deferral. The amount of deferral charge earned at the date of
314	314	34 prepayment shall also be calculated. If the deferral charge earned is
315	315	35 less than the deferral charge paid, the difference shall be added to the
316	316	36 unearned portion of the loan finance charge. If any part of a deferral
317	317	37 charge has been earned but has not been paid, that part shall be
318	318	38 subtracted from the unearned portion of the loan finance charge or shall
319	319	39 be added to the unpaid balance.
320	320	40 (7) This section does not preclude the collection or retention by the
321	321	41 lender of delinquency charges (IC 24-4.5-3-203.5).
322	322	42 (8) If the maturity is accelerated for any reason and judgment is
323	323	2023 IN 235—LS 6678/DI 101 8
324	324	1 obtained, the debtor is entitled to the same rebate as if payment had
325	325	2 been made on the date judgment is entered.
326	326	3 (9) Upon prepayment in full of a consumer loan by the proceeds of
327	327	4 consumer credit insurance (as defined in IC 24-4.5-4-103), the debtor
328	328	5 or the debtor's estate shall pay the same loan finance charge or receive
329	329	6 the same rebate as though the debtor had prepaid the agreement on the
330	330	7 date the proceeds of the insurance are paid to the lender, but no later
331	331	8 than ten (10) business days after satisfactory proof of loss is furnished
332	332	9 to the lender. This subsection applies whether or not the loan is
333	333	10 precomputed.
334	334	11 (10) Upon prepayment in full of a transaction with a term of more
335	335	12 than sixty-one (61) months, the unearned loan finance charge shall be
336	336	13 computed by applying the disclosed annual percentage rate that would
337	337	14 yield the loan finance charge originally contracted for to the unpaid
338	338	15 balances of the amount financed for the full computational periods
339	339	16 following the prepayment, as originally scheduled or as deferred.
340	340	17 SECTION 6. IC 24-4.5-3-505, AS AMENDED BY P.L.69-2018,
341	341	18 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
342	342	19 JULY 1, 2023]: Sec. 505. (1) Every creditor required to be licensed
343	343	20 under this article shall maintain records in conformity with United
344	344	21 States generally accepted accounting principles and practices, or in any
345	345	22 other form that may be preapproved at the discretion of the director, in
346	346	23 a manner that will enable the department to determine whether the
347	347	24 licensee is complying with the provisions of this article. The record
348	348	25 keeping system of a licensee shall be sufficient if the licensee makes
349	349	26 the required information reasonably available. The department shall
350	350	27 determine the sufficiency of the records and whether the licensee has
351	351	28 made the required information reasonably available. The department
352	352	29 shall be given free access to the records wherever located. The records
353	353	30 pertaining to any loan shall be retained for two (2) years after making
354	354	31 the final entry relating to the loan, but in the case of a revolving loan
355	355	32 account the two (2) years is measured from the date of each entry. A
356	356	33 person licensed or required to be licensed under this chapter is subject
357	357	34 to IC 28-1-2-30.5 with respect to any records maintained by the person.
358	358	35 A person that is exempt (either under this article or under
359	359	36 IC 24-4.4-1-202(b)(6)(a)) from licensing and that sponsors one (1) or
360	360	37 more licensed mortgage loan originators as independent agents under
361	361	38 an exclusive written agreement, as permitted by
362	362	39 IC 24-4.4-1-202(b)(6)(a), shall:
363	363	40 (a) cooperate with the department; and
364	364	41 (b) provide access to records and documents;
365	365	42 as required by the department in carrying out examinations of the
366	366	2023 IN 235—LS 6678/DI 101 9
367	367	1 activities of the licensed mortgage loan originators sponsored by the
368	368	2 federal savings bank.
369	369	3 (2) The unique identifier of any person originating a mortgage
370	370	4 transaction must be clearly shown on all mortgage transaction
371	371	5 application forms and any other documents as required by the director.
372	372	6 (3) Every licensee that engages in mortgage transactions shall use
373	373	7 automated examination and regulatory software designated by the
374	374	8 director, including third party software. Use of the software consistent
375	375	9 with guidance documents and policies issued by the director is not a
376	376	10 violation of IC 28-1-2-30.
377	377	11 (4) Each:
378	378	12 (a) creditor that is licensed by the department to engage in
379	379	13 mortgage transactions; and
380	380	14 (b) entity that is exempt (either under this article or under
381	381	15 IC 24-4.4-1-202(b)(6)(a)) from licensing and that:
382	382	16 (i) employs one (1) or more licensed mortgage loan
383	383	17 originators; or
384	384	18 (ii) sponsors under an exclusive written agreement, as
385	385	19 permitted by IC 24-4.4-1-202(b)(6)(a), one (1) or more
386	386	20 licensed mortgage loan originators as independent agents;
387	387	21 shall submit to the NMLSR a call report, which must be in the form
388	388	22 and contain information the NMLSR requires.
389	389	23 (5) Every creditor required to be licensed under this article shall file
390	390	24 with the department a composite report as required by the department,
391	391	25 but not more frequently than annually, in the form prescribed by the
392	392	26 department relating to all consumer loans made by the licensee. The
393	393	27 department shall consult with comparable officials in other states for
394	394	28 the purpose of making the kinds of information required in the reports
395	395	29 uniform among the states. Information contained in the reports shall be
396	396	30 confidential and may be published only in composite form. The
397	397	31 department may impose a fee in an amount fixed by the department
398	398	32 under IC 28-11-3-5 for each day that a creditor fails to file the report
399	399	33 required by this subsection.
400	400	34 (6) Based on the information contained in the composite reports
401	401	35 filed with the department under subsection (5), the department
402	402	36 shall publish on the department's website, on an annual basis, a
403	403	37 report that contains the following information, in composite form,
404	404	38 concerning supervised loans made after June 30, 2023, by
405	405	39 nondepository licensees during the reporting period covered by the
406	406	40 composite reports filed under subsection (5):
407	407	41 (a) The total number of supervised loans made during the
408	408	42 reporting period, categorized by the following ranges of the
409	409	2023 IN 235—LS 6678/DI 101 10
410	410	1 principal (as defined in section 107(3) of this chapter) of the
411	411	2 supervised loans:
412	412	3 (i) Supervised loans with a principal that is two thousand
413	413	4 dollars ($2,000) or less.
414	414	5 (ii) Supervised loans with a principal that is more than two
415	415	6 thousand dollars ($2,000) but does not exceed four
416	416	7 thousand dollars ($4,000).
417	417	8 (iii) Supervised loans with a principal that is more than
418	418	9 four thousand dollars ($4,000) but does not exceed ten
419	419	10 thousand dollars ($10,000).
420	420	11 (iv) Supervised loans with a principal that is more than ten
421	421	12 thousand dollars ($10,000).
422	422	13 (b) For each range of principal identified under subdivision
423	423	14 (a), the aggregate dollar amount of the supervised loans made
424	424	15 in that range during the reporting period.
425	425	16 (c) For the data reported in each range of principal under
426	426	17 subdivisions (a) and (b), the change in the reported data for
427	427	18 the reporting period as compared to the corresponding
428	428	19 reported data in the immediately preceding reporting period.
429	429	20 (6) (7) A creditor required to be licensed under this article shall file
430	430	21 notification with the department if the licensee:
431	431	22 (a) has a change in name, address, or principals;
432	432	23 (b) opens a new branch, closes an existing branch, or relocates an
433	433	24 existing branch;
434	434	25 (c) files for bankruptcy or reorganization; or
435	435	26 (d) is subject to revocation or suspension proceedings by a state
436	436	27 or governmental authority with regard to the licensee's activities;
437	437	28 not later than thirty (30) days after the date of the event described in
438	438	29 this subsection.
439	439	30 (7) (8) Every licensee shall file notification with the department if
440	440	31 the licensee or any director, executive officer, or manager of the
441	441	32 licensee has been convicted of a felony under the laws of Indiana or
442	442	33 any other jurisdiction. The licensee shall file the notification required
443	443	34 by this subsection not later than thirty (30) days after the date of the
444	444	35 event described in this subsection.
445	445	36 SECTION 7. IC 24-4.5-3-508, AS AMENDED BY P.L.29-2022,
446	446	37 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
447	447	38 JULY 1, 2023]: Sec. 508. Loan Finance Charge for Supervised Loans
448	448	39 ) (1) This section applies only to the following:
449	449	40 (a) A supervised loan entered into before July 1, 2023.
450	450	41 (b) A supervised loan that is secured by:
451	451	42 (i) an interest in land; or
452	452	2023 IN 235—LS 6678/DI 101 11
453	453	1 (ii) personal property used or expected to be used as the
454	454	2 principal dwelling of the debtor;
455	455	3 regardless of when the supervised loan is entered into.
456	456	4 With respect to a supervised loan, including a loan pursuant to a
457	457	5 revolving loan account, a supervised lender may contract for and
458	458	6 receive a loan finance charge not exceeding that permitted by this
459	459	7 section.
460	460	8 (2) The loan finance charge, calculated according to the actuarial
461	461	9 method, may not exceed the equivalent of the greater of:
462	462	10 (a) the total of:
463	463	11 (i) thirty-six percent (36%) per year on that part of the unpaid
464	464	12 balances of the principal (as defined in section 107(3) of this
465	465	13 chapter) which is two thousand dollars ($2,000) or less;
466	466	14 (ii) twenty-one percent (21%) per year on that part of the
467	467	15 unpaid balances of the principal (as defined in section 107(3)
468	468	16 of this chapter) which is more than two thousand dollars
469	469	17 ($2,000) but does not exceed four thousand dollars ($4,000);
470	470	18 and
471	471	19 (iii) fifteen percent (15%) per year on that part of the unpaid
472	472	20 balances of the principal (as defined in section 107(3) of this
473	473	21 chapter) which is more than four thousand dollars ($4,000); or
474	474	22 (b) twenty-five percent (25%) per year on the unpaid balances of
475	475	23 the principal (as defined in section 107(3) of this chapter).
476	476	24 (3) In the case of a loan agreement entered into before July 1, 2020,
477	477	25 this section does not limit or restrict the manner of contracting for the
478	478	26 loan finance charge, whether by way of add-on, discount, or otherwise,
479	479	27 so long as the rate of the loan finance charge does not exceed that
480	480	28 permitted by this section. If the loan is precomputed:
481	481	29 (a) the loan finance charge may be calculated on the assumption
482	482	30 that all scheduled payments will be made when due; and
483	483	31 (b) the effect of prepayment is governed by the provisions on
484	484	32 rebate upon prepayment in section 210 of this chapter.
485	485	33 After June 30, 2020, a loan agreement may not be entered into for a
486	486	34 precomputed supervised loan. The loan finance charge authorized by
487	487	35 this section must be contracted for between the lender and the debtor,
488	488	36 and must be calculated by applying a rate not exceeding the rate set
489	489	37 forth in subsection (2) to unpaid balances of the principal (as defined
490	490	38 in section 107(3) of this chapter).
491	491	39 (4) The term of a loan for the purposes of this section commences
492	492	40 on the date the loan is made. Differences in the lengths of months are
493	493	41 disregarded, and a day may be counted as one-thirtieth (1/30) of a
494	494	42 month. Subject to classifications and differentiations the lender may
495	495	2023 IN 235—LS 6678/DI 101 12
496	496	1 reasonably establish, a part of a month in excess of fifteen (15) days
497	497	2 may be treated as a full month if periods of fifteen (15) days or less are
498	498	3 disregarded and that procedure is not consistently used to obtain a
499	499	4 greater yield than would otherwise be permitted.
500	500	5 (5) Subject to classifications and differentiations the lender may
501	501	6 reasonably establish, the lender may make the same loan finance
502	502	7 charge on all principal amounts within a specified range. A loan
503	503	8 finance charge does not violate subsection (2) if:
504	504	9 (a) when applied to the median amount within each range, it does
505	505	10 not exceed the maximum permitted in subsection (2); and
506	506	11 (b) when applied to the lowest amount within each range, it does
507	507	12 not produce a rate of loan finance charge exceeding the rate
508	508	13 calculated according to subdivision (a) by more than eight percent
509	509	14 (8%) of the rate calculated according to subdivision (a).
510	510	15 (6) The amounts of two thousand dollars ($2,000) and four thousand
511	511	16 dollars ($4,000) in subsection (2) and thirty dollars ($30) in subsection
512	512	17 (7) are subject to change pursuant to the provisions on adjustment of
513	513	18 dollar amounts (IC 24-4.5-1-106). However, notwithstanding
514	514	19 IC 24-4.5-1-106(1), for the adjustment of the amount of thirty dollars
515	515	20 ($30), the Reference Base Index to be used is the Index for October
516	516	21 1992. Notwithstanding IC 24-4.5-1-106(1), for the adjustment of the
517	517	22 amounts of two thousand dollars ($2,000) and four thousand dollars
518	518	23 ($4,000), the Reference Base Index to be used is the Index for October
519	519	24 2012.
520	520	25 (7) With respect to a supervised loan not made pursuant to a
521	521	26 revolving loan account, the lender may contract for and receive a
522	522	27 minimum loan finance charge of not more than thirty dollars ($30). The
523	523	28 minimum loan finance charge allowed under this subsection may be
524	524	29 imposed only if the lender does not assess a nonrefundable prepaid
525	525	30 finance charge under subsection (8) and:
526	526	31 (a) the debtor prepays in full a consumer loan, refinancing, or
527	527	32 consolidation, regardless of whether the loan, refinancing, or
528	528	33 consolidation is precomputed;
529	529	34 (b) the loan, refinancing, or consolidation prepaid by the debtor
530	530	35 is subject to a loan finance charge that:
531	531	36 (i) is contracted for by the parties; and
532	532	37 (ii) does not exceed the rate prescribed in subsection (2); and
533	533	38 (c) the loan finance charge earned at the time of prepayment is
534	534	39 less than the minimum loan finance charge contracted for under
535	535	40 this subsection.
536	536	41 (8) Except as provided in subsections (7) and (10)(c), in addition to
537	537	42 the loan finance charge provided for in this section and to any other
538	538	2023 IN 235—LS 6678/DI 101 13
539	539	1 charges and fees permitted by this chapter, the lender may contract for
540	540	2 and receive a nonrefundable prepaid finance charge of not more than
541	541	3 fifty dollars ($50) if the loan agreement is entered into before July 1,
542	542	4 2020, or, if the loan agreement is entered into after June 30, 2020, not
543	543	5 more than the following:
544	544	6 (a) Seventy-five dollars ($75), in the case of a loan agreement for
545	545	7 a principal amount which is two thousand dollars ($2,000) or less.
546	546	8 (b) One hundred fifty dollars ($150) in the case of a loan
547	547	9 agreement for a principal amount which is more than two
548	548	10 thousand dollars ($2,000) but does not exceed four thousand
549	549	11 dollars ($4,000).
550	550	12 (c) Two hundred dollars ($200) in the case of a loan agreement
551	551	13 for a principal amount which is more than four thousand dollars
552	552	14 ($4,000).
553	553	15 The amounts in this subsection are not subject to change under
554	554	16 IC 24-4.5-1-106.
555	555	17 (9) The nonrefundable prepaid finance charge provided for in
556	556	18 subsection (8) is not subject to refund or rebate. However, for any
557	557	19 supervised loan entered into after June 30, 2020, any amount charged
558	558	20 by the lender, other than by a lender that is a depository institution (as
559	559	21 defined in IC 24-4.5-1-301.5(12)), under subsection (8) that exceeds
560	560	22 the applicable amount permitted by subsection (8) constitutes a
561	561	23 violation of this article under IC 24-4.5-6-107.5(l) and is subject to
562	562	24 refund. Any amount charged by a depository institution (as defined in
563	563	25 IC 24-4.5-1-301.5(12)) under subsection (8) that exceeds the applicable
564	564	26 amount set forth in subsection (8) is subject to refund.
565	565	27 (10) Notwithstanding subsections (8) and (9), in the case of a
566	566	28 supervised loan that is not secured by an interest in land, if a lender
567	567	29 retains any part of a nonrefundable prepaid finance charge charged on
568	568	30 a loan that is paid in full by a new loan from the same lender, the
569	569	31 following apply:
570	570	32 (a) If the loan is paid in full by the new loan within three (3)
571	571	33 months after the date of the prior loan, the lender may not charge
572	572	34 a nonrefundable prepaid finance charge on the new loan, or, in the
573	573	35 case of a revolving loan, on the increased credit line.
574	574	36 (b) The lender may not assess more than two (2) nonrefundable
575	575	37 prepaid finance charges in any twelve (12) month period.
576	576	38 (c) Subject to subdivisions (a) and (b), if a supervised loan that is
577	577	39 entered into by a lender and a debtor before July 1, 2020, is paid
578	578	40 in full by a new loan from the same lender after June 30, 2020, the
579	579	41 lender may contract for and receive a nonrefundable prepaid
580	580	42 finance charge in the amount set forth in subsection (8) for loan
581	581	2023 IN 235—LS 6678/DI 101 14
582	582	1 agreements entered into after June 30, 2020.
583	583	2 (11) In the case of a supervised loan that is secured by an interest in
584	584	3 land, this section does not prohibit a lender from contracting for and
585	585	4 receiving a fee for preparing deeds, mortgages, reconveyances, and
586	586	5 similar documents under section 202(1)(d)(ii) of this chapter, in
587	587	6 addition to the nonrefundable prepaid finance charge provided for in
588	588	7 subsection (8).
589	589	8 SECTION 8. IC 24-4.5-3-508.1 IS ADDED TO THE INDIANA
590	590	9 CODE AS A NEW SECTION TO READ AS FOLLOWS
591	591	10 [EFFECTIVE JULY 1, 2023]: Sec. 508.1. (1) This section applies
592	592	11 only to a supervised loan that:
593	593	12 (a) is entered into after June 30, 2023; and
594	594	13 (b) is not secured by:
595	595	14 (i) an interest in land; or
596	596	15 (ii) personal property used or expected to be used as the
597	597	16 principal dwelling of the debtor.
598	598	17 (2) With respect to a supervised loan, including a loan pursuant
599	599	18 to a revolving loan account, a supervised lender may contract for
600	600	19 and receive a loan finance charge not exceeding thirty-six percent
601	601	20 (36%) per year on the unpaid balances of the principal (as defined
602	602	21 in section 107(3) of this chapter).
603	603	22 (3) A loan agreement may not be entered into for a precomputed
604	604	23 supervised loan. The loan finance charge authorized by this section
605	605	24 must be contracted for between the lender and the debtor, and
606	606	25 must be calculated by applying a rate not exceeding the rate set
607	607	26 forth in subsection (2) to unpaid balances of the principal (as
608	608	27 defined in section 107(3) of this chapter).
609	609	28 (4) The term of a loan for the purposes of this section
610	610	29 commences on the date the loan is made. Differences in the lengths
611	611	30 of months are disregarded, and a day may be counted as
612	612	31 one-thirtieth (1/30) of a month. Subject to classifications and
613	613	32 differentiations the lender may reasonably establish, a part of a
614	614	33 month in excess of fifteen (15) days may be treated as a full month
615	615	34 if periods of fifteen (15) days or less are disregarded and that
616	616	35 procedure is not consistently used to obtain a greater yield than
617	617	36 would otherwise be permitted.
618	618	37 (5) With respect to a supervised loan not made pursuant to a
619	619	38 revolving loan account, the lender may contract for and receive a
620	620	39 minimum loan finance charge of not more than thirty dollars ($30).
621	621	40 The minimum loan finance charge allowed under this subsection
622	622	41 may be imposed only if the lender does not assess a nonrefundable
623	623	42 prepaid finance charge under subsection (6) and:
624	624	2023 IN 235—LS 6678/DI 101 15
625	625	1 (a) the debtor prepays in full a supervised loan, refinancing,
626	626	2 or consolidation, regardless of whether the loan, refinancing,
627	627	3 or consolidation is precomputed;
628	628	4 (b) the loan, refinancing, or consolidation prepaid by the
629	629	5 debtor is subject to a loan finance charge that:
630	630	6 (i) is contracted for by the parties; and
631	631	7 (ii) does not exceed the rate prescribed in subsection (2);
632	632	8 and
633	633	9 (c) the loan finance charge earned at the time of prepayment
634	634	10 is less than the minimum loan finance charge contracted for
635	635	11 under this subsection.
636	636	12 The amount of thirty dollars ($30) in this subsection is subject to
637	637	13 change pursuant to the provisions on adjustment of dollar amounts
638	638	14 (IC 24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1),
639	639	15 for the adjustment of the amount of thirty dollars ($30), the
640	640	16 Reference Base Index to be used is the Index for October 1992.
641	641	17 (6) Except as provided in subsections (5) and (8)(c), in addition
642	642	18 to the loan finance charge provided for in this section and to any
643	643	19 other charges and fees permitted by this chapter, the lender may
644	644	20 contract for and receive a nonrefundable prepaid finance charge
645	645	21 of not more than the following:
646	646	22 (a) Seventy-five dollars ($75), in the case of a loan agreement
647	647	23 for a principal amount which is two thousand dollars ($2,000)
648	648	24 or less.
649	649	25 (b) One hundred fifty dollars ($150) in the case of a loan
650	650	26 agreement for a principal amount which is more than two
651	651	27 thousand dollars ($2,000) but does not exceed four thousand
652	652	28 dollars ($4,000).
653	653	29 (c) Two hundred dollars ($200) in the case of a loan
654	654	30 agreement for a principal amount which is more than four
655	655	31 thousand dollars ($4,000).
656	656	32 The amounts in this subsection are not subject to change under
657	657	33 IC 24-4.5-1-106.
658	658	34 (7) The nonrefundable prepaid finance charge provided for in
659	659	35 subsection (6) is not subject to refund or rebate. However, any
660	660	36 amount charged by the lender, other than by a lender that is a
661	661	37 depository institution (as defined in IC 24-4.5-1-301.5(12)), under
662	662	38 subsection (6) that exceeds the applicable amount permitted by
663	663	39 subsection (6) constitutes a violation of this article under
664	664	40 IC 24-4.5-6-107.5(l) and is subject to refund. Any amount charged
665	665	41 by a depository institution (as defined in IC 24-4.5-1-301.5(12))
666	666	42 under subsection (6) that exceeds the applicable amount set forth
667	667	2023 IN 235—LS 6678/DI 101 16
668	668	1 in subsection (6) is subject to refund.
669	669	2 (8) Notwithstanding subsections (6) and (7), in the case of a
670	670	3 supervised loan to which this section applies, if a lender retains any
671	671	4 part of a nonrefundable prepaid finance charge charged on a
672	672	5 supervised loan that is paid in full by a new loan from the same
673	673	6 lender, the following apply:
674	674	7 (a) If the loan is paid in full by the new loan within three (3)
675	675	8 months after the date of the prior loan, the lender may not
676	676	9 charge a nonrefundable prepaid finance charge on the new
677	677	10 loan, or, in the case of a revolving loan, on the increased credit
678	678	11 line.
679	679	12 (b) The lender may not assess more than two (2)
680	680	13 nonrefundable prepaid finance charges in any twelve (12)
681	681	14 month period.
682	682	15 (c) Subject to subdivisions (a) and (b), if a supervised loan that
683	683	16 is entered into by a lender and a debtor before July 1, 2020, is
684	684	17 paid in full by a new loan from the same lender after June 30,
685	685	18 2023, the lender may contract for and receive a
686	686	19 nonrefundable prepaid finance charge in the amount set forth
687	687	20 in subsection (6) for loan agreements entered into after June
688	688	21 30, 2023.
689	689	22 SECTION 9. IC 24-4.5-4-107, AS AMENDED BY P.L.85-2020,
690	690	23 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
691	691	24 JULY 1, 2023]: Sec. 107. Maximum Charge by Creditor for Insurance
692	692	25 - (1) Except as provided in subsection (2), if a creditor contracts for or
693	693	26 receives a separate charge for insurance, the amount charged to the
694	694	27 debtor for the insurance may not exceed the premium to be charged by
695	695	28 the insurer, as computed at the time the charge to the debtor is
696	696	29 determined, conforming to any rate filings required by law and made
697	697	30 by the insurer with the insurance commissioner.
698	698	31 (2) A creditor who provides consumer credit insurance in relation
699	699	32 to a revolving charge account (as defined in IC 24-4.5-2-108) or
700	700	33 revolving loan account (as defined in IC 24-4.5-3-108) may calculate
701	701	34 the charge to the debtor in each billing cycle by applying the current
702	702	35 premium rate to one (1) of the following:
703	703	36 (a) The average daily unpaid balance of the debt in the cycle.
704	704	37 (b) The unpaid balance of the debt or a median amount within a
705	705	38 specified range of unpaid balances of debt on approximately the
706	706	39 same day of the cycle. The day of the cycle need not be the day
707	707	40 used in calculating the credit service charge (IC 24-4.5-2-201(6))
708	708	41 or loan finance charge (IC 24-4.5-3-201, and IC 24-4.5-3-508),
709	709	42 IC 24-4.5-3-508, or IC 24-4.5-3-508.1, as applicable), but the
710	710	2023 IN 235—LS 6678/DI 101 17
711	711	1 specified range shall be the range used for that purpose.
712	712	2 (c) The unpaid balances of principal calculated according to the
713	713	3 actuarial method.
714	714	4 (d) The amount of the insurance benefit for the cycle.
715	715	5 SECTION 10. IC 24-4.5-7-102, AS AMENDED BY P.L.69-2018,
716	716	6 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
717	717	7 JULY 1, 2023]: Sec. 102. (1) Except as otherwise provided, all
718	718	8 provisions of this article applying to consumer loans, including
719	719	9 IC 24-4.5-3-502.2, apply to small loans, as defined in this chapter.
720	720	10 (2) Subject to subsection (7), a person may not regularly engage in
721	721	11 Indiana in any of the following actions unless the department first
722	722	12 issues to the person a license under this chapter:
723	723	13 (a) The making of small loans.
724	724	14 (b) Taking assignments of small loans.
725	725	15 (c) Undertaking the direct collection of payments from or the
726	726	16 enforcement of rights against debtors arising from small loans.
727	727	17 (3) Subject to subsection (4), a person that seeks licensure under
728	728	18 this chapter:
729	729	19 (a) shall apply to the department for a license in the form and
730	730	20 manner prescribed by the department; and
731	731	21 (b) is subject to the same licensure requirements and procedures
732	732	22 as an applicant for a license to make consumer loans (other than
733	733	23 mortgage transactions) under IC 24-4.5-3-502.
734	734	24 (4) A person that seeks to make, take assignments of, or undertake
735	735	25 the direct collection of payments from or the enforcement of rights
736	736	26 against debtors arising from both:
737	737	27 (a) small loans under this chapter; and
738	738	28 (b) consumer loans (other than mortgage transactions) that are not
739	739	29 small loans;
740	740	30 must obtain a separate license from the department for each type of
741	741	31 loan, as described in IC 24-4.5-3-502(5).
742	742	32 (5) This chapter applies to:
743	743	33 (a) a lender;
744	744	34 (b) a bank, savings association, credit union, or other state or
745	745	35 federally regulated financial institution except those that are
746	746	36 specifically exempt regarding limitations on interest rates and
747	747	37 fees; or
748	748	38 (c) a person, if the department determines that a transaction is:
749	749	39 (i) in substance a disguised loan; or
750	750	40 (ii) the application of subterfuge for the purpose of avoiding
751	751	41 this chapter.
752	752	42 (6) A loan that:
753	753	2023 IN 235—LS 6678/DI 101 18
754	754	1 (a) does not qualify as a small loan under section 104 of this
755	755	2 chapter;
756	756	3 (b) is for a term shorter than that specified in section 401(1) of
757	757	4 this chapter; or
758	758	5 (c) is made in violation of section 201, 401, 402, 404, or 410 of
759	759	6 this chapter;
760	760	7 is subject to this article. The department may conform the loan finance
761	761	8 charge for a loan described in this subsection to the limitations set forth
762	762	9 in IC 24-4.5-3-508(2). IC 24-4.5-3-508.1(2).
763	763	10 (7) Notwithstanding IC 24-4.5-1-301.5, for purposes of subsection
764	764	11 (2), a person "regularly engages" in any of the activities described in
765	765	12 subsection (2) with respect to a small loan if the person:
766	766	13 (a) performed any of the activities described in subsection (2)
767	767	14 with respect to a small loan at least one (1) time in the preceding
768	768	15 calendar year; or
769	769	16 (b) performs or will perform any of the activities described in
770	770	17 subsection (2) with respect to a small loan at least one (1) time in
771	771	18 the current calendar year if the person did not perform any of the
772	772	19 activities described in subsection (2) with respect to a small loan
773	773	20 at least one (1) time in the preceding calendar year.
774	774	21 SECTION 11. IC 24-4.5-7-411 IS AMENDED TO READ AS
775	775	22 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 411. Finance charges
776	776	23 made in compliance with this chapter are exempt from:
777	777	24 (a) IC 24-4.5-3-508;
778	778	25 (b) IC 24-4.5-3-508.1; and
779	779	26 (c) IC 35-45-7.
780	780	27 SECTION 12. IC 28-7-5-28 IS AMENDED TO READ AS
781	781	28 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 28. (a) The maximum
782	782	29 rate of interest charged by pawnbrokers shall be the same as the
783	783	30 maximum loan finance charge for supervised lenders loans under
784	784	31 IC 24-4.5-3-508(2). IC 24-4.5-3-508.1(2). For purposes of this
785	785	32 subsection:
786	786	33 (1) the term of a loan commences on the date on which the loan
787	787	34 is made;
788	788	35 (2) differences in lengths of months are disregarded; and
789	789	36 (3) each day is counted as one-thirtieth (1/30) of a month.
790	790	37 The minimum term of a loan made by a pawnbroker is one (1) month.
791	791	38 However, on loans paid in full within the first month, the pawnbroker
792	792	39 may charge one (1) month's interest.
793	793	40 (b) Interest shall not be deducted in advance, neither shall the
794	794	41 pawnbroker induce or permit any borrower to split up or divide any
795	795	42 loan or loans for the purpose of evading any provisions of this chapter.
796	796	2023 IN 235—LS 6678/DI 101 19
797	797	1 (c) If a pawnbroker charges or receives interest in excess of that
798	798	2 provided in this section, or makes any charges not authorized by this
799	799	3 chapter, the pawnbroker shall forfeit principal and interest and return
800	800	4 the pledge upon demand of the pledger and surrender of the pawn
801	801	5 ticket without the principal or interest. If such excessive or
802	802	6 unauthorized charges have been paid by the pledger, the pledger may
803	803	7 recover the same, including the principal if paid, in a civil action
804	804	8 against the pawnbroker.
805	805	9 SECTION 13. IC 35-45-7-2, AS AMENDED BY P.L.158-2013,
806	806	10 SECTION 536, IS AMENDED TO READ AS FOLLOWS
807	807	11 [EFFECTIVE JULY 1, 2023]: Sec. 2. A person who, in exchange for
808	808	12 the loan of any property, knowingly or intentionally receives or
809	809	13 contracts to receive from another person any consideration, at a rate
810	810	14 greater than two (2) times the rate specified in IC 24-4.5-3-508(2)(a)(i),
811	811	15 IC 24-4.5-3-508.1(2), commits loansharking, a Level 6 felony.
812	812	16 However, loansharking is a Level 5 felony if force or the threat of force
813	813	17 is used to collect or to attempt to collect any of the property loaned or
814	814	18 any of the consideration for the loan.
815	815	2023 IN 235—LS 6678/DI 101