LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6738 NOTE PREPARED: Dec 19, 2024
BILL NUMBER: SB 464 BILL AMENDED:
SUBJECT: Financial Institutions and Consumer Credit.
FIRST AUTHOR: Sen. Bassler BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill provides that a reference to federal law in: (1) the First Lien Mortgage
Lending Act; (2) the Uniform Consumer Credit Code (UCCC); or (3) the Indiana Code title governing
financial institutions; is a reference to the law as in effect December 31, 2024 (rather than December 31,
2023, under current law).
The bill amends the definition of "principal" for purposes of the UCCC provisions governing consumer loans
to specify that the term does not include any loan proceeds held as security for the loan.
The bill makes a technical change to the Indiana Code provision governing the prepayment of consumer loans
to incorporate a cross reference to the Indiana Code provision setting forth the authorized nonrefundable
prepaid finance charge for supervised loans. (Current law references only the authorized nonrefundable
prepaid finance charge for consumer loans other than supervised loans.)
The bill also amends the Indiana Code provision governing audit requirements for credit unions to provide
that Department of Financial Institutions may establish by policy or rule accounting and auditing standards
necessary to define the audit requirements.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The Department of Financial Institutions (DFI) would see an increase
in workload to amend some internal regulatory processes. The bill’s requirements are within the agency’s
routine administrative functions and should be able to be implemented with no additional appropriations,
assuming near customary agency staffing and resource levels. [The DFI is funded through its own dedicated
fund, the Financial Institutions Fund, which was appropriated $12.5 M in FY 2024 and FY 2025.]
Explanation of State Revenues:
Explanation of Local Expenditures:
SB 464 1 Explanation of Local Revenues:
State Agencies Affected: Department of Financial Institutions.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Nate Bodnar, 317-234-9476.
SB 464 2