Indiana 2025 Regular Session

Indiana Senate Bill SB0464 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	ES0464.1
2		-	March 20, 2025
3		-	ENGROSSED
	1	+	SB0464.1
	2	+	January 24, 2025
4	3		SENATE BILL No. 464
5	4		_____
6		-	DIGEST OF SB 464 (Updated ~~March 18~~, 2025 2:~~44 pm~~ - DI ~~154~~)
7		-	Citations Affected: IC 24-4.4; IC 24-4.5; IC ~~24-5; IC~~ 28-7; IC 28-10.
	5	+	DIGEST OF SB 464 (Updated January 22, 2025 9:55 am - DI 140)
	6	+	Citations Affected: IC 24-4.4; IC 24-4.5; IC 28-7; IC 28-10.
8	7		Synopsis: Financial institutions and consumer credit. Provides that a
9	8		reference to federal law in: (1) the First Lien Mortgage Lending Act;
10	9		(2) the Uniform Consumer Credit Code (UCCC); or (3) the Indiana
11	10		Code title governing financial institutions; is a reference to the law as
12	11		in effect December 31, 2024 (rather than December 31, 2023, under
13	12		current law). Amends the definition of "principal" for purposes of the
14	13		UCCC provisions governing consumer loans to specify that the term
15		-	does not include any loan proceeds held as security for the loan.
16		-	~~Amends~~ the ~~definition of "consumer~~ ~~transaction" for purposes of~~ the
17		-	~~deceptive~~ consumer ~~sales act~~ to ~~include conduct that arises from,~~
18		-	~~occurs in connection with,~~ ~~or otherwise involves a transaction between~~
19		-	~~a supplier and a state or local~~ law ~~enforcement agency within Indiana.~~
20		-	~~Amends~~ the ~~definition of "supplier"~~ for ~~purposes of the deceptive~~
21		-	~~consumer sales act to include any entity that provides a product or~~
22		-	~~service~~ to ~~a state or local law enforcement agency. Provides~~ that ~~a court~~
23		-	~~can only provide relief in a transaction between a supplier and a law~~
24		-	~~enforcement agency when~~ the ~~action is brought and enforced by the~~
25		-	~~(Continued next page)~~
	14	+	does not include any loan proceeds held as security for the loan. Makes
	15	+	a technical change to the Indiana Code provision governing the
	16	+	prepayment of consumer loans to incorporate a cross reference to the
	17	+	Indiana Code provision setting forth the authorized nonrefundable
	18	+	prepaid finance charge for supervised loans. (Current law references
	19	+	only the authorized nonrefundable prepaid finance charge for consumer
	20	+	loans other than supervised loans.) Amends the Indiana Code provision
	21	+	governing audit requirements for credit unions to provide that
	22	+	department of financial institutions may establish by policy or rule
	23	+	accounting and auditing standards necessary to define the audit
	24	+	requirements.
26	25		Effective: July 1, 2025.
27	26		Bassler, Baldwin, Gaskill
28		-	(HOUSE SPONSORS — TESHKA, ANDRADE)
29	27		January 13, 2025, read first time and referred to Committee on Insurance and Financial
30	28		Institutions.
31	29		January 23, 2025, reported favorably — Do Pass.
32		-	January 27, 2025, read second time, ordered engrossed. Engrossed.
33		-	January 30, 2025, read third time, passed. Yeas 48, nays 0.
34		-	HOUSE ACTION
35		-	March 3, 2025, read first time and referred to Committee on Financial Institutions.
36		-	March 20, 2025, amended, reported — Do Pass.
37		-	ES 464—LS 6738/DI 101 Digest Continued
38		-	attorney general. Makes a technical change to the Indiana Code
39		-	provision governing the prepayment of consumer loans to incorporate
40		-	a cross reference to the Indiana Code provision setting forth the
41		-	authorized nonrefundable prepaid finance charge for supervised loans.
42		-	(Current law references only the authorized nonrefundable prepaid
43		-	finance charge for consumer loans other than supervised loans.)
44		-	Provides that under certain circumstances, a lender may contract for
45		-	and receive a nonrefundable prepaid finance charge of 3% of the loan
46		-	amount on a loan that is secured by an interest in land and is not made
47		-	under a revolving loan account. Provides that under certain
48		-	circumstances, a lender may contract for and receive a nonrefundable
49		-	prepaid finance charge of 3% of the line of credit on a loan that is
50		-	secured by an interest in land and is made under a revolving loan
51		-	account. Amends the Indiana Code provision governing audit
52		-	requirements for credit unions to provide that department of financial
53		-	institutions may establish by policy or rule accounting and auditing
54		-	standards necessary to define the audit requirements. Provides that: (1)
55		-	if a joint agreement of merger is approved by the department of
56		-	financial institutions, any credit union whose existence will terminate
57		-	as a result of the merger shall submit the joint agreement to a vote of
58		-	its shareholders as directed by the resolution of the board of directors;
59		-	and (2) a majority of shareholders voting may approve the joint
60		-	agreement.
61		-	ES 464—LS 6738/DI 101ES 464—LS 6738/DI 101 March 20, 2025
	30	+	SB 464—LS 6738/DI 101 January 24, 2025
62	31		First Regular Session of the 124th General Assembly (2025)
63	32		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
64	33		Constitution) is being amended, the text of the existing provision will appear in this style type,
65	34		additions will appear in this style type, and deletions will appear in this style type.
66	35		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
67	36		provision adopted), the text of the new provision will appear in this style type. Also, the
68	37		word NEW will appear in that style type in the introductory clause of each SECTION that adds
69	38		a new provision to the Indiana Code or the Indiana Constitution.
70	39		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
71	40		between statutes enacted by the 2024 Regular Session of the General Assembly.
72		-	ENGROSSED
73	41		SENATE BILL No. 464
74	42		A BILL FOR AN ACT to amend the Indiana Code concerning
75	43		financial institutions.
76	44		Be it enacted by the General Assembly of the State of Indiana:
77	45		1 SECTION 1. IC 24-4.4-1-102, AS AMENDED BY P.L.30-2024,
78	46		2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
79	47		3 JULY 1, 2025]: Sec. 102. (1) This article shall be liberally construed
80	48		4 and applied to promote its underlying purposes and policies.
81	49		5 (2) The underlying purposes and policies of this article are:
82	50		6 (a) to permit and encourage the development of fair and
83	51		7 economically sound first lien mortgage lending practices; and
84	52		8 (b) to conform the regulation of first lien mortgage lending
85	53		9 practices to applicable state and federal laws, rules, regulations,
86	54		10 policies, and guidance.
87	55		11 (3) A reference to a requirement imposed by this article includes
88	56		12 reference to a related rule of the department adopted under this article.
89	57		13 (4) A reference to a federal law in this article is a reference to the
90	58		14 law as in effect December 31, 2023. 2024.
91	59		15 SECTION 2. IC 24-4.5-1-102, AS AMENDED BY P.L.30-2024,
92	60		16 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
93	61		17 JULY 1, 2025]: Sec. 102. (1) This article shall be liberally construed
94		-	ES 464—LS 6738/DI 101 2
	62	+	SB 464—LS 6738/DI 101 2
95	63		1 and applied to promote its underlying purposes and policies.
96	64		2 (2) The underlying purposes and policies of this article are:
97	65		3 (a) to simplify, clarify, and modernize the law governing retail
98	66		4 installment sales, consumer credit, small loans, and usury;
99	67		5 (b) to provide rate ceilings to assure an adequate supply of credit
100	68		6 to consumers;
101	69		7 (c) to further consumer understanding of the terms of credit
102	70		8 transactions and to foster competition among suppliers of
103	71		9 consumer credit so that consumers may obtain credit at
104	72		10 reasonable cost;
105	73		11 (d) to protect consumer buyers, lessees, and borrowers against
106	74		12 unfair practices by some suppliers of consumer credit, having due
107	75		13 regard for the interests of legitimate and scrupulous creditors;
108	76		14 (e) to permit and encourage the development of fair and
109	77		15 economically sound consumer credit practices;
110	78		16 (f) to conform the regulation of consumer credit transactions to
111	79		17 the policies of the Consumer Credit Protection Act (15 U.S.C.
112	80		18 1601 et seq.) and to applicable state and federal laws, rules,
113	81		19 regulations, policies, and guidance; and
114	82		20 (g) to make uniform the law, including administrative rules,
115	83		21 among the various jurisdictions.
116	84		22 (3) A reference to a requirement imposed by this article includes
117	85		23 reference to a related rule or guidance of the department adopted
118	86		24 pursuant to this article.
119	87		25 (4) A reference to a federal law in this article is a reference to the
120	88		26 law as in effect December 31, 2023. 2024.
121	89		27 (5) This article applies to a transaction if the director determines
122	90		28 that the transaction:
123	91		29 (a) is in substance a disguised consumer credit transaction; or
124	92		30 (b) involves the application of subterfuge for the purpose of
125	93		31 avoiding this article.
126	94		32 A determination by the director under this subsection must be in
127	95		33 writing and shall be delivered to all parties to the transaction.
128	96		34 IC 4-21.5-3 applies to a determination made under this subsection.
129	97		35 (6) The authority of this article remains in effect, whether a licensee,
130	98		36 an individual, or a person subject to this article acts or claims to act
131	99		37 under any licensing or registration law of this state, or claims to act
132	100		38 without such authority.
133	101		39 (7) A violation of a state or federal law, regulation, or rule
134	102		40 applicable to consumer credit transactions is a violation of this article.
135	103		41 (8) The department may enforce penalty provisions set forth in 15
136	104		42 U.S.C. 1640 for violations of disclosure requirements applicable to
137		-	ES 464—LS 6738/DI 101 3
	105	+	SB 464—LS 6738/DI 101 3
138	106		1 mortgage transactions.
139	107		2 SECTION 3. IC 24-4.5-3-107, AS AMENDED BY P.L.145-2008,
140	108		3 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
141	109		4 JULY 1, 2025]: Sec. 107. Definitions: "Lender"; "Precomputed";
142	110		5 "Principal" ) (1) Except as otherwise provided, "lender" means a
143	111		6 person regularly engaged in making consumer loans. The term includes
144	112		7 an assignee of the lender's right to payment but use of the term does not
145	113		8 in itself impose on an assignee any obligation of the lender with respect
146	114		9 to events occurring before the assignment.
147	115		10 (2) A loan, refinancing, or consolidation is "precomputed" if the
148	116		11 debt is expressed as a sum comprising the principal and the amount of
149	117		12 the loan finance charge computed in advance.
150	118		13 (3) "Principal" of a loan means the total of:
151	119		14 (a) the net amount paid to, receivable by, or paid or payable for
152	120		15 the account of the debtor;
153	121		16 (b) the amount of any discount excluded from the loan finance
154	122		17 charge (subsection (2) of IC 24-4.5-3-109); and
155	123		18 (c) to the extent that payment is deferred:
156	124		19 (i) amounts actually paid or to be paid by the lender for
157	125		20 registration, certificate of title, or license fees if not included
158	126		21 in (a); and
159		-	22 (ii) additional charges permitted by this chapter
160		-	23 ~~(IC~~ 24-4.5-3-202).
	127	+	22 (ii) additional charges permitted by this chapter (IC
	128	+	23 24-4.5-3-202).
161	129		24 The term does not include any loan proceeds held as security for
162	130		25 the loan.
163		-	26 SECTION 4. IC 24-4.5-3-201, AS AMENDED BY P.L.29-2022,
164		-	27 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
165		-	28 JULY 1, 2025]: Sec. 201. Loan Finance Charge for Consumer Loans
166		-	29 other than Supervised Loans—(1) This section does not apply to a
167		-	30 supervised loan (as defined in section 501 of this chapter). Except as
168		-	31 provided in subsections (7) and (9), with respect to a consumer loan,
169		-	32 a lender may contract for a loan finance charge, calculated according
170		-	33 to the actuarial method, not exceeding twenty-five percent (25%) per
171		-	34 year on the unpaid balances of the principal (as defined in section
172		-	35 107(3) of this chapter).
173		-	36 (2) In the case of a loan agreement entered into before July 1, 2020,
174		-	37 this section does not limit or restrict the manner of contracting for the
175		-	38 loan finance charge, whether by way of add-on, discount, or otherwise,
176		-	39 so long as the rate of the loan finance charge does not exceed that
177		-	40 permitted by this section. If the loan is precomputed:
178		-	41 (a) the loan finance charge may be calculated on the assumption
179		-	42 that all scheduled payments will be made when due; and
180		-	ES 464—LS 6738/DI 101 4
181		-	1 (b) the effect of prepayment is governed by the provisions on
182		-	2 rebate upon prepayment in section 210 of this chapter.
183		-	3 (3) The following apply to a loan agreement for a consumer loan (or
184		-	4 for the refinancing or consolidation of a consumer loan) that is entered
185		-	5 into after June 30, 2020:
186		-	6 (a) The consumer loan is subject to this section, including the
187		-	7 limitations set forth in:
188		-	8 (i) subsection (1) with respect to the loan finance charge; and
189		-	9 (ii) subsection (9)(b) with respect to the amount of the
190		-	10 authorized nonrefundable prepaid finance charge, in the case
191		-	11 of a consumer loan that is not secured by an interest in land.
192		-	12 (b) The loan finance charge authorized by this section must be:
193		-	13 (i) contracted for between the lender and the debtor; and
194		-	14 (ii) calculated by applying a rate not exceeding the rate set
195		-	15 forth in subsection (1) to unpaid balances of the principal (as
196		-	16 defined in section 107(3) of this chapter).
197		-	17 (c) A loan agreement for a precomputed consumer loan is
198		-	18 prohibited.
199		-	19 (d) Subject to subsection (12), in addition to the loan finance
200		-	20 charge authorized by subsection (1) and to any other fees
201		-	21 permitted by this chapter, and not subject to the twenty-five
202		-	22 percent (25%) rate set forth in subsection (1), the lender may
203		-	23 contract for and receive as a condition for, or an incident to, the
204		-	24 extension of credit a nonrefundable prepaid finance charge under
205		-	25 subsection (9), whether the charge is:
206		-	26 (i) paid separately in cash or by check before or at
207		-	27 consummation; or
208		-	28 (ii) withheld from the proceeds of the consumer loan.
209		-	29 (4) For the purposes of this section, the term of a loan commences
210		-	30 with the date the loan is made. Differences in the lengths of months are
211		-	31 disregarded, and a day may be counted as one-thirtieth (1/30) of a
212		-	32 month. Subject to classifications and differentiations the lender may
213		-	33 reasonably establish, a part of a month in excess of fifteen (15) days
214		-	34 may be treated as a full month if periods of fifteen (15) days or less are
215		-	35 disregarded and if that procedure is not consistently used to obtain a
216		-	36 greater yield than would otherwise be permitted. For purposes of
217		-	37 computing average daily balances, the creditor may elect to treat all
218		-	38 months as consisting of thirty (30) days.
219		-	39 (5) With respect to a consumer loan made pursuant to a revolving
220		-	40 loan account:
221		-	41 (a) the loan finance charge shall be deemed not to exceed the
222		-	42 maximum annual percentage rate if the loan finance charge
223		-	ES 464—LS 6738/DI 101 5
224		-	1 contracted for and received does not exceed a charge in each
225		-	2 monthly billing cycle which is two and eighty-three thousandths
226		-	3 percent (2.083%) of an amount not greater than:
227		-	4 (i) the average daily balance of the debt;
228		-	5 (ii) the unpaid balance of the debt on the same day of the
229		-	6 billing cycle; or
230		-	7 (iii) subject to subsection (6), the median amount within a
231		-	8 specified range within which the average daily balance or the
232		-	9 unpaid balance of the debt, on the same day of the billing
233		-	10 cycle, is included; for the purposes of this clause and clause
234		-	11 (ii), a variation of not more than four (4) days from month to
235		-	12 month is "the same day of the billing cycle";
236		-	13 (b) if the billing cycle is not monthly, the loan finance charge
237		-	14 shall be deemed not to exceed the maximum annual percentage
238		-	15 rate if the loan finance charge contracted for and received does
239		-	16 not exceed a percentage which bears the same relation to
240		-	17 one-twelfth (1/12) the maximum annual percentage rate as the
241		-	18 number of days in the billing cycle bears to thirty (30); and
242		-	19 (c) notwithstanding subsection (1), if there is an unpaid balance
243		-	20 on the date as of which the loan finance charge is applied, the
244		-	21 lender may contract for and receive a charge not exceeding fifty
245		-	22 cents ($0.50) if the billing cycle is monthly or longer, or the pro
246		-	23 rata part of fifty cents ($0.50) which bears the same relation to
247		-	24 fifty cents ($0.50) as the number of days in the billing cycle bears
248		-	25 to thirty (30) if the billing cycle is shorter than monthly, but no
249		-	26 charge may be made pursuant to this subdivision if the lender has
250		-	27 made an annual charge for the same period as permitted by the
251		-	28 provisions on additional charges in section 202(1)(c) of this
252		-	29 chapter.
253		-	30 (6) Subject to classifications and differentiations the lender may
254		-	31 reasonably establish, the lender may make the same loan finance
255		-	32 charge on all amounts financed within a specified range. A loan finance
256		-	33 charge does not violate subsection (1) if:
257		-	34 (a) when applied to the median amount within each range, it does
258		-	35 not exceed the maximum permitted by subsection (1); and
259		-	36 (b) when applied to the lowest amount within each range, it does
260		-	37 not produce a rate of loan finance charge exceeding the rate
261		-	38 calculated according to subdivision (a) by more than eight percent
262		-	39 (8%) of the rate calculated according to subdivision (a).
263		-	40 (7) With respect to a consumer loan not made pursuant to a
264		-	41 revolving loan account, the lender may contract for and receive a
265		-	42 minimum loan finance charge of not more than thirty dollars ($30). The
266		-	ES 464—LS 6738/DI 101 6
267		-	1 minimum loan finance charge allowed under this subsection may be
268		-	2 imposed only if the lender does not contract for or receive a
269		-	3 nonrefundable prepaid finance charge under subsection (9) and:
270		-	4 (a) the debtor prepays in full a consumer loan, refinancing, or
271		-	5 consolidation, regardless of whether the loan, refinancing, or
272		-	6 consolidation is precomputed;
273		-	7 (b) the loan, refinancing, or consolidation prepaid by the debtor
274		-	8 is subject to a loan finance charge that:
275		-	9 (i) is contracted for by the parties; and
276		-	10 (ii) does not exceed the rate prescribed in subsection (1); and
277		-	11 (c) the loan finance charge earned at the time of prepayment is
278		-	12 less than the minimum loan finance charge contracted for under
279		-	13 this subsection.
280		-	14 (8) The amount of thirty dollars ($30) in subsection (7) is subject to
281		-	15 change under the provisions on adjustment of dollar amounts
282		-	16 (IC 24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), the
283		-	17 Reference Base Index to be used under this subsection is the Index for
284		-	18 October 1992.
285		-	19 (9) Except as provided in subsection (7), and subject to subsection
286		-	20 (12), in addition to the loan finance charge authorized by subsection (1)
287		-	21 and to any other charges and fees permitted by this chapter, a lender
288		-	22 may contract for and receive a nonrefundable prepaid finance charge
289		-	23 of not more than the following:
290		-	24 (a) In the case of a consumer loan that is secured by an interest in
291		-	25 land and that:
292		-	26 (i) is not made under a revolving loan account, two percent
293		-	27 (2%) three percent (3%) of the loan amount; or
294		-	28 (ii) is made under a revolving loan account, two percent (2%)
295		-	29 three percent (3%) of the line of credit.
296		-	30 (b) In the case of consumer loan that is not secured by an interest
297		-	31 in land, fifty dollars ($50) if the loan agreement is entered into
298		-	32 before July 1, 2020. If the loan agreement is entered into after
299		-	33 June 30, 2020, not more than the following:
300		-	34 (i) Seventy-five dollars ($75), in the case of a loan agreement
301		-	35 for a principal amount which is two thousand dollars ($2,000)
302		-	36 or less.
303		-	37 (ii) One hundred fifty dollars ($150) in the case of a loan
304		-	38 agreement for a principal amount which is more than two
305		-	39 thousand dollars ($2,000) but does not exceed four thousand
306		-	40 dollars ($4,000).
307		-	41 (iii) Two hundred dollars ($200) in the case of a loan
308		-	42 agreement for a principal amount which is more than four
309		-	ES 464—LS 6738/DI 101 7
310		-	1 thousand dollars ($4,000).
311		-	2 The amounts in this subsection are not subject to change under
312		-	3 IC 24-4.5-1-106.
313		-	4 (10) The nonrefundable prepaid finance charge provided for in
314		-	5 subsection (9) is not subject to refund or rebate. However, for any loan
315		-	6 entered into after June 30, 2020, any amount charged by the lender,
316		-	7 other than by a lender that is a depository institution (as defined in
317		-	8 IC 24-4.5-1-301.5(12)), under subsection (9) that exceeds the
318		-	9 applicable amount permitted by subsection (9)(b) constitutes a
319		-	10 violation of this article under IC 24-4.5-6-107.5(l) and is subject to
320		-	11 refund. Any amount charged by a depository institution (as defined in
321		-	12 IC 24-4.5-1-301.5(12)) under subsection (9) that exceeds the applicable
322		-	13 amount set forth in subsection (9)(b) is subject to refund.
323		-	14 (11) If the director determines that a lender's accrual method of
324		-	15 accounting as applied to a consumer loan under this section involves
325		-	16 the application of subterfuge for the purpose of circumventing this
326		-	17 chapter, the director may conform the loan finance charge and fees for
327		-	18 the transaction to the limitations set forth in this section and may
328		-	19 require a refund of overcharges under IC 24-4.5-6-106(2)(a). A
329		-	20 determination by the director under this subsection:
330		-	21 (a) must be in writing;
331		-	22 (b) shall be delivered to all parties in the transaction; and
332		-	23 (c) is subject to IC 4-21.5-3.
333		-	24 (12) At the time of consummation of a consumer loan:
334		-	25 (a) the loan finance charge authorized by subsection (1); and
335		-	26 (b) the nonrefundable prepaid finance charge authorized by
336		-	27 subsection (9) (including any amount charged by a depository
337		-	28 institution (as defined in IC 24-4.5-1-301.5(12)) that exceeds the
338		-	29 applicable amount set forth in subsection (9)(b));
339		-	30 are subject to IC 35-45-7 and, when combined, may not exceed the rate
340		-	31 set forth in IC 35-45-7-2.
341		-	32 (13) Notwithstanding subsections (9) and (10), in the case of a
342		-	33 consumer loan that is not secured by an interest in land, if a lender
343		-	34 retains any part of a nonrefundable prepaid finance charge charged on
344		-	35 a loan that is paid in full by a new loan from the same lender, the
345		-	36 following apply:
346		-	37 (a) If the loan is paid in full by the new loan within three (3)
347		-	38 months after the date of the prior loan, the lender may not charge
348		-	39 a nonrefundable prepaid finance charge on the new loan, or, in the
349		-	40 case of a revolving loan, on the increased credit line.
350		-	41 (b) The lender may not assess more than two (2) nonrefundable
351		-	42 prepaid finance charges in any twelve (12) month period.
352		-	ES 464—LS 6738/DI 101 8
353		-	1 (c) Subject to subdivisions (a) and (b), if a loan that is entered
354		-	2 into by a lender and a debtor before July 1, 2020, is paid in full by
355		-	3 a new loan from the same lender after June 30, 2020, the lender
356		-	4 may contract for and receive a nonrefundable prepaid finance
357		-	5 charge in the amount set forth in subsection (9)(b) for loan
358		-	6 agreements entered into after June 30, 2020.
359		-	7 (14) In the case of a consumer loan that is secured by an interest in
360		-	8 land, this section does not prohibit a lender from contracting for and
361		-	9 receiving a fee for preparing deeds, mortgages, reconveyances, and
362		-	10 similar documents under section 202(1)(d)(ii) of this chapter, in
363		-	11 addition to the nonrefundable prepaid finance charge provided for in
364		-	12 subsection (9).
365		-	13 SECTION 5. IC 24-4.5-3-209, AS AMENDED BY P.L.85-2020,
366		-	14 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
367		-	15 JULY 1, 2025]: Sec. 209. Right to Prepay - (1) Subject to the
368		-	16 provisions on rebate upon prepayment (section 210 of this chapter), the
369		-	17 debtor may prepay in full the unpaid balance of a consumer loan,
370		-	18 refinancing, or consolidation at any time without penalty. With respect
371		-	19 to a consumer loan that is primarily secured by an interest in land, a
372		-	20 lender may contract for a penalty for prepayment of the loan in full, not
373		-	21 to exceed two percent (2%) of any amount prepaid within sixty (60)
374		-	22 days of the date of the prepayment in full, after deducting all refunds
375		-	23 and rebates as of the date of the prepayment. However, the penalty may
376		-	24 not be imposed:
377		-	25 (a) if the loan is refinanced or consolidated with the same
378		-	26 creditor;
379		-	27 (b) for prepayment by proceeds of any insurance or acceleration
380		-	28 after default; or
381		-	29 (c) after three (3) years from the contract date.
382		-	30 For purposes of this section, the collection of the amount of any
383		-	31 conditionally waived closing costs (as allowed under section 202(d) of
384		-	32 this chapter) by a creditor, as stipulated in the loan agreement, at the
385		-	33 time of prepayment in full does not constitute a prepayment penalty
386		-	34 and is not subject to the limitations set forth in this subsection.
387		-	35 (2) At the time of prepayment of a consumer loan not subject to the
388		-	36 provisions of rebate upon prepayment (section 210 of this chapter), the
389		-	37 total finance charge, including the prepaid finance charge but
390		-	38 excluding the nonrefundable prepaid finance charge allowed under
391		-	39 section 201(9) or section 508(8) of this chapter, as applicable, may
392		-	40 not exceed the maximum charge allowed under this chapter for the
393		-	41 period the loan was in effect. For the purposes of determining
394		-	42 compliance with this subsection, the total finance charge does not
395		-	ES 464—LS 6738/DI 101 9
396		-	1 include the following:
397		-	2 (a) The nonrefundable prepaid finance charge allowed under
398		-	3 section 201(9) or section 508(8) of this chapter, as applicable.
399		-	4 (b) The debtor paid mortgage broker fee, if any, paid to a person
400		-	5 who does not control, is not controlled by, or is not under
401		-	6 common control with, the creditor holding the loan at the time a
402		-	7 consumer loan is prepaid.
403		-	8 (3) The creditor or mortgage servicer shall provide, in writing, an
404		-	9 accurate payoff amount for the consumer loan to the debtor within
405		-	10 seven (7) business days (excluding legal public holidays, Saturdays,
406		-	11 and Sundays) after the creditor or mortgage servicer receives the
407		-	12 debtor's written request for the accurate consumer loan payoff amount.
408		-	13 A payoff statement provided by a creditor or mortgage servicer under
409		-	14 this subsection must show the date the statement was prepared and
410		-	15 itemize the unpaid principal balance and each fee, charge, or other sum
411		-	16 included within the payoff amount. A creditor or mortgage servicer
412		-	17 who fails to provide the accurate consumer loan payoff amount is liable
413		-	18 for:
414		-	19 (a) one hundred dollars ($100) if an accurate consumer loan
415		-	20 payoff amount is not provided by the creditor or mortgage
416		-	21 servicer within seven (7) business days (excluding legal public
417		-	22 holidays, Saturdays, and Sundays) after the creditor or mortgage
418		-	23 servicer receives the debtor's first written request; and
419		-	24 (b) the greater of:
420		-	25 (i) one hundred dollars ($100); or
421		-	26 (ii) the loan finance charge that accrues on the loan from the
422		-	27 date the creditor or mortgage servicer receives the first written
423		-	28 request until the date on which the accurate consumer loan
424		-	29 payoff amount is provided;
425		-	30 if an accurate consumer loan payoff amount is not provided by the
426		-	31 creditor or mortgage servicer within seven (7) business days
427		-	32 (excluding legal public holidays, Saturdays, and Sundays) after
428		-	33 the creditor or mortgage servicer receives the debtor's second
429		-	34 written request, and the creditor or mortgage servicer failed to
430		-	35 comply with subdivision (a).
431		-	36 A liability under this subsection is an excess charge under
432		-	37 IC 24-4.5-5-202.
433		-	38 (4) As used in this subsection, "mortgage transaction" means a
434		-	39 consumer loan in which a mortgage or a land contract (or another
435		-	40 consensual security interest equivalent to a mortgage or a land contract)
436		-	41 that constitutes a lien is created or retained against land upon which
437		-	42 there is constructed or intended to be constructed a dwelling that is or
438		-	ES 464—LS 6738/DI 101 10
439		-	1 will be used by the debtor primarily for personal, family, or household
440		-	2 purposes. This subsection applies to a mortgage transaction with
441		-	3 respect to which any installment or minimum payment due is
442		-	4 delinquent for at least sixty (60) days. The creditor, servicer, or the
443		-	5 creditor's agent shall acknowledge a written offer made in connection
444		-	6 with a proposed short sale not later than five (5) business days
445		-	7 (excluding legal public holidays, Saturdays, and Sundays) after the date
446		-	8 of the offer if the offer complies with the requirements for a qualified
447		-	9 written request set forth in 12 U.S.C. 2605(e)(1)(B). The creditor,
448		-	10 servicer, or creditor's agent is required to acknowledge a written offer
449		-	11 made in connection with a proposed short sale from a third party acting
450		-	12 on behalf of the debtor only if the debtor has provided written
451		-	13 authorization for the creditor, servicer, or creditor's agent to do so. Not
452		-	14 later than thirty (30) business days (excluding legal public holidays,
453		-	15 Saturdays, and Sundays) after receipt of an offer under this subsection,
454		-	16 the creditor, servicer, or creditor's agent shall respond to the offer with
455		-	17 an acceptance or a rejection of the offer. The thirty (30) day period
456		-	18 described in this subsection may be extended for not more than fifteen
457		-	19 (15) business days (excluding legal public holidays, Saturdays, and
458		-	20 Sundays) if, before the end of the thirty (30) day period, the creditor,
459		-	21 the servicer, or the creditor's agent notifies the debtor of the extension
460		-	22 and the reason the extension is needed. Payment accepted by a creditor,
461		-	23 servicer, or creditor's agent in connection with a short sale constitutes
462		-	24 payment in full satisfaction of the mortgage transaction unless the
463		-	25 creditor, servicer, or creditor's agent obtains:
464		-	26 (a) the following statement: "The debtor remains liable for any
465		-	27 amount still owed under the mortgage transaction."; or
466		-	28 (b) a statement substantially similar to the statement set forth in
467		-	29 subdivision (a);
468		-	30 acknowledged by the initials or signature of the debtor, on or before the
469		-	31 date on which the short sale payment is accepted. As used in this
470		-	32 subsection, "short sale" means a transaction in which the property that
471		-	33 is the subject of a mortgage transaction is sold for an amount that is
472		-	34 less than the amount of the debtor's outstanding obligation under the
473		-	35 mortgage transaction. A creditor or mortgage servicer that fails to
474		-	36 respond to an offer within the time prescribed by this subsection is
475		-	37 liable in accordance with 12 U.S.C. 2605(f) in any action brought
476		-	38 under that section.
477		-	39 (5) This section is not intended to provide the owner of real estate
478		-	40 subject to the issuance of process under a judgment or decree of
479		-	41 foreclosure any protection or defense against a deficiency judgment for
480		-	42 purposes of the borrower protections from liability that must be
481		-	ES 464—LS 6738/DI 101 11
482		-	1 disclosed under 12 CFR 1026.38(p)(3) on the form required by 12 CFR
483		-	2 1026.38 ("Closing Disclosures" form under the Amendments to the
484		-	3 2013 Integrated Mortgage Disclosures Rule Under the Real Estate
485		-	4 Settlement Procedures Act (Regulation X) and the Truth In Lending
486		-	5 Act (Regulation Z) and the 2013 Loan Originator Rule Under the Truth
487		-	6 in Lending Act (Regulation Z)).
488		-	7 SECTION 6. IC 24-5-0.5-2, AS AMENDED BY P.L.280-2019,
489		-	8 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
490		-	9 JULY 1, 2025]: Sec. 2. (a) As used in this chapter:
491		-	10 (1) "Consumer transaction" means a sale, lease, assignment,
492		-	11 award by chance, or other disposition of an item of personal
493		-	12 property, real property, a service, or an intangible, except
494		-	13 securities and policies or contracts of insurance issued by
495		-	14 corporations authorized to transact an insurance business under
496		-	15 the laws of the state of Indiana, with or without an extension of
497		-	16 credit, to a person for purposes that are primarily personal,
498		-	17 familial, charitable, agricultural, or household, or a solicitation to
499		-	18 supply any of these things. However, the term includes the
500		-	19 following:
501		-	20 (A) A transfer of structured settlement payment rights under
502		-	21 IC 34-50-2.
503		-	22 (B) An unsolicited advertisement sent to a person by telephone
504		-	23 facsimile machine offering a sale, lease, assignment, award by
505		-	24 chance, or other disposition of an item of personal property,
506		-	25 real property, a service, or an intangible.
507		-	26 (C) The collection of or attempt to collect a debt by a debt
508		-	27 collector.
509		-	28 (D) Conduct that is described in section 3(a) of this chapter
510		-	29 and that arises from, occurs in connection with, or
511		-	30 otherwise involves a transaction between a supplier and a
512		-	31 state or local law enforcement agency within Indiana.
513		-	32 (2) "Person" means an individual, corporation, the state of Indiana
514		-	33 or its subdivisions or agencies, business trust, estate, trust,
515		-	34 partnership, association, nonprofit corporation or organization, or
516		-	35 cooperative or any other legal entity.
517		-	36 (3) "Supplier" means the following:
518		-	37 (A) A seller, lessor, assignor, or other person who regularly
519		-	38 engages in or solicits consumer transactions, including
520		-	39 soliciting a consumer transaction by using a telephone
521		-	40 facsimile machine to transmit an unsolicited advertisement.
522		-	41 The term includes a manufacturer, a wholesaler, or a retailer,
523		-	42 or, in a consumer transaction described in subdivision
524		-	ES 464—LS 6738/DI 101 12
525		-	1 (1)(D), any entity that provides a product or service to a
526		-	2 state or local law enforcement agency within Indiana,
527		-	3 whether or not the person deals directly with the consumer.
528		-	4 (B) A debt collector.
529		-	5 (4) "Subject of a consumer transaction" means the personal
530		-	6 property, real property, services, or intangibles offered or
531		-	7 furnished in a consumer transaction.
532		-	8 (5) "Cure" as applied to a deceptive act, means either:
533		-	9 (A) to offer in writing to adjust or modify the consumer
534		-	10 transaction to which the act relates to conform to the
535		-	11 reasonable expectations of the consumer generated by such
536		-	12 deceptive act and to perform such offer if accepted by the
537		-	13 consumer; or
538		-	14 (B) to offer in writing to rescind such consumer transaction
539		-	15 and to perform such offer if accepted by the consumer.
540		-	16 The term includes an offer in writing of one (1) or more items of
541		-	17 value, including monetary compensation, that the supplier
542		-	18 delivers to a consumer or a representative of the consumer if
543		-	19 accepted by the consumer.
544		-	20 (6) "Offer to cure" as applied to a deceptive act is a cure that:
545		-	21 (A) is reasonably calculated to remedy a loss claimed by the
546		-	22 consumer; and
547		-	23 (B) includes a minimum additional amount that is the greater
548		-	24 of:
549		-	25 (i) ten percent (10%) of the value of the remedy under
550		-	26 clause (A), but not more than four thousand dollars
551		-	27 ($4,000); or
552		-	28 (ii) five hundred dollars ($500);
553		-	29 as compensation for attorney's fees, expenses, and other costs
554		-	30 that a consumer may incur in relation to the deceptive act.
555		-	31 (7) "Uncured deceptive act" means a deceptive act:
556		-	32 (A) with respect to which a consumer who has been damaged
557		-	33 by such act has given notice to the supplier under section 5(a)
558		-	34 of this chapter; and
559		-	35 (B) either:
560		-	36 (i) no offer to cure has been made to such consumer within
561		-	37 thirty (30) days after such notice; or
562		-	38 (ii) the act has not been cured as to such consumer within a
563		-	39 reasonable time after the consumer's acceptance of the offer
564		-	40 to cure.
565		-	41 (8) "Incurable deceptive act" means a deceptive act done by a
566		-	42 supplier as part of a scheme, artifice, or device with intent to
567		-	ES 464—LS 6738/DI 101 13
568		-	1 defraud or mislead. The term includes a failure of a transferee of
569		-	2 structured settlement payment rights to timely provide a true and
570		-	3 complete disclosure statement to a payee as provided under
571		-	4 IC 34-50-2 in connection with a direct or indirect transfer of
572		-	5 structured settlement payment rights.
573		-	6 (9) "Senior consumer" means an individual who is at least sixty
574		-	7 (60) years of age.
575		-	8 (10) "Telephone facsimile machine" means equipment that has
576		-	9 the capacity to transcribe text or images, or both, from:
577		-	10 (A) paper into an electronic signal and to transmit that signal
578		-	11 over a regular telephone line; or
579		-	12 (B) an electronic signal received over a regular telephone line
580		-	13 onto paper.
581		-	14 (11) "Unsolicited advertisement" means material advertising the
582		-	15 commercial availability or quality of:
583		-	16 (A) property;
584		-	17 (B) goods; or
585		-	18 (C) services;
586		-	19 that is transmitted to a person without the person's prior express
587		-	20 invitation or permission, in writing or otherwise.
588		-	21 (12) "Debt" has the meaning set forth in 15 U.S.C. 1692(a)(5).
589		-	22 (13) "Debt collector" has the meaning set forth in 15 U.S.C.
590		-	23 1692(a)(6). The term does not include a person admitted to the
591		-	24 practice of law in Indiana if the person is acting within the course
592		-	25 and scope of the person's practice as an attorney. The term
593		-	26 includes a debt buyer (as defined in IC 24-5-15.5).
594		-	27 (b) As used in section 3(b)(15) and 3(b)(16) of this chapter:
595		-	28 (1) "Directory assistance" means the disclosure of telephone
596		-	29 number information in connection with an identified telephone
597		-	30 service subscriber by means of a live operator or automated
598		-	31 service.
599		-	32 (2) "Local telephone directory" refers to a telephone classified
600		-	33 advertising directory or the business section of a telephone
601		-	34 directory that is distributed by a telephone company or directory
602		-	35 publisher to subscribers located in the local exchanges contained
603		-	36 in the directory. The term includes a directory that includes
604		-	37 listings of more than one (1) telephone company.
605		-	38 (3) "Local telephone number" refers to a telephone number that
606		-	39 has the three (3) number prefix used by the provider of telephone
607		-	40 service for telephones physically located within the area covered
608		-	41 by the local telephone directory in which the number is listed. The
609		-	42 term does not include long distance numbers or 800-, 888-, or
610		-	ES 464—LS 6738/DI 101 14
611		-	1 900- exchange numbers listed in a local telephone directory.
612		-	2 SECTION 7. IC 24-5-0.5-4, AS AMENDED BY P.L.118-2024,
613		-	3 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
614		-	4 JULY 1, 2025]: Sec. 4. (a) A person relying upon an uncured or
615		-	5 incurable deceptive act may bring an action for the damages actually
616		-	6 suffered as a consumer as a result of the deceptive act or five hundred
617		-	7 dollars ($500), whichever is greater. The court may increase damages
618		-	8 for a willful deceptive act in an amount that does not exceed the greater
619		-	9 of:
620		-	10 (1) three (3) times the actual damages of the consumer suffering
621		-	11 the loss; or
622		-	12 (2) one thousand dollars ($1,000).
623		-	13 Except as provided in subsection (k), the court may award reasonable
624		-	14 attorney's fees to the party that prevails in an action under this
625		-	15 subsection. This subsection does not apply to a consumer transaction
626		-	16 in real property, including a claim or action involving a construction
627		-	17 defect (as defined in IC 32-27-3-1(5)) brought against a construction
628		-	18 professional (as defined in IC 32-27-3-1(4)), except for purchases of
629		-	19 time shares and camping club memberships. This subsection does not
630		-	20 apply with respect to a deceptive act described in section 3(b)(20) of
631		-	21 this chapter. This subsection also does not apply to a violation of
632		-	22 IC 24-4.7, IC 24-5-12, IC 24-5-14, or IC 24-5-14.5. Actual damages
633		-	23 awarded to a person under this section have priority over any civil
634		-	24 penalty imposed under this chapter.
635		-	25 (b) Any person who is entitled to bring an action under subsection
636		-	26 (a) on the person's own behalf against a supplier for damages for a
637		-	27 deceptive act may bring a class action against such supplier on behalf
638		-	28 of any class of persons of which that person is a member and which has
639		-	29 been damaged by such deceptive act, subject to and under the Indiana
640		-	30 Rules of Trial Procedure governing class actions, except as herein
641		-	31 expressly provided. Except as provided in subsection (k), the court may
642		-	32 award reasonable attorney's fees to the party that prevails in a class
643		-	33 action under this subsection, provided that such fee shall be determined
644		-	34 by the amount of time reasonably expended by the attorney and not by
645		-	35 the amount of the judgment, although the contingency of the fee may
646		-	36 be considered. Except in the case of an extension of time granted by the
647		-	37 attorney general under IC 24-10-2-2(b) in an action subject to IC 24-10,
648		-	38 any money or other property recovered in a class action under this
649		-	39 subsection which cannot, with due diligence, be restored to consumers
650		-	40 within one (1) year after the judgment becomes final shall be returned
651		-	41 to the party depositing the same. This subsection does not apply to a
652		-	42 consumer transaction in real property, except for purchases of time
653		-	ES 464—LS 6738/DI 101 15
654		-	1 shares and camping club memberships. This subsection does not apply
655		-	2 with respect to a deceptive act described in section 3(b)(20) of this
656		-	3 chapter. Actual damages awarded to a class have priority over any civil
657		-	4 penalty imposed under this chapter.
658		-	5 (c) The attorney general may bring an action to enjoin a deceptive
659		-	6 act, including a deceptive act described in section 3(b)(20) of this
660		-	7 chapter, notwithstanding subsections (a) and (b). However, the attorney
661		-	8 general may seek to enjoin patterns of incurable deceptive acts with
662		-	9 respect to consumer transactions in real property. In addition, the court
663		-	10 may:
664		-	11 (1) issue an injunction;
665		-	12 (2) order the supplier to make payment of the money unlawfully
666		-	13 received from the aggrieved consumers to be held in escrow for
667		-	14 distribution to aggrieved consumers;
668		-	15 (3) for a knowing violation against a senior consumer, increase
669		-	16 the amount of restitution ordered under subdivision (2) in any
670		-	17 amount up to three (3) times the amount of damages incurred or
671		-	18 value of property or assets lost;
672		-	19 (4) order the supplier to pay to the state the reasonable costs of
673		-	20 the attorney general's investigation and prosecution related to the
674		-	21 action;
675		-	22 (5) provide for the appointment of a receiver; and
676		-	23 (6) order the department of state revenue to suspend the supplier's
677		-	24 registered retail merchant certificate, subject to the requirements
678		-	25 and prohibitions contained in IC 6-2.5-8-7(a)(5), if the court finds
679		-	26 that a violation of this chapter involved the sale or solicited sale
680		-	27 of a synthetic drug (as defined in IC 35-31.5-2-321), a synthetic
681		-	28 drug lookalike substance (as defined in IC 35-31.5-2-321.5
682		-	29 (repealed)) (before July 1, 2019), a controlled substance analog
683		-	30 (as defined in IC 35-48-1-9.3), or a substance represented to be a
684		-	31 controlled substance (as described in IC 35-48-4-4.6); and
685		-	32 (7) grant relief in an action that arises from, or otherwise
686		-	33 involves, a consumer transaction described in section
687		-	34 2(a)(1)(D) of this chapter only when the action is brought and
688		-	35 enforced by the attorney general under this subsection.
689		-	36 (d) In an action under subsection (a), (b), or (c), the court may void
690		-	37 or limit the application of contracts or clauses resulting from deceptive
691		-	38 acts and order restitution to be paid to aggrieved consumers.
692		-	39 (e) In any action under subsection (a) or (b), upon the filing of the
693		-	40 complaint or on the appearance of any defendant, claimant, or any
694		-	41 other party, or at any later time, the trial court, the supreme court, or the
695		-	42 court of appeals may require the plaintiff, defendant, claimant, or any
696		-	ES 464—LS 6738/DI 101 16
697		-	1 other party or parties to give security, or additional security, in such
698		-	2 sum as the court shall direct to pay all costs, expenses, and
699		-	3 disbursements that shall be awarded against that party or which that
700		-	4 party may be directed to pay by any interlocutory order by the final
701		-	5 judgment or on appeal.
702		-	6 (f) Any person who violates the terms of an injunction issued under
703		-	7 subsection (c) shall forfeit and pay to the state a civil penalty of not
704		-	8 more than fifteen thousand dollars ($15,000) per violation. For the
705		-	9 purposes of this section, the court issuing an injunction shall retain
706		-	10 jurisdiction, the cause shall be continued, and the attorney general
707		-	11 acting in the name of the state may petition for recovery of civil
708		-	12 penalties. Whenever the court determines that an injunction issued
709		-	13 under subsection (c) has been violated, the court shall award
710		-	14 reasonable costs to the state.
711		-	15 (g) If a court finds any person has knowingly violated section 3 or
712		-	16 10 of this chapter, other than section 3(b)(19), 3(b)(20), or 3(b)(40) of
713		-	17 this chapter, the attorney general, in an action pursuant to subsection
714		-	18 (c), may recover from the person on behalf of the state a civil penalty
715		-	19 of a fine not exceeding five thousand dollars ($5,000) per violation.
716		-	20 (h) If a court finds that a person has violated section 3(b)(19) of this
717		-	21 chapter, the attorney general, in an action under subsection (c), may
718		-	22 recover from the person on behalf of the state a civil penalty as follows:
719		-	23 (1) For a knowing or intentional violation, one thousand five
720		-	24 hundred dollars ($1,500).
721		-	25 (2) For a violation other than a knowing or intentional violation,
722		-	26 five hundred dollars ($500).
723		-	27 A civil penalty recovered under this subsection shall be deposited in
724		-	28 the consumer protection division telephone solicitation fund
725		-	29 established by IC 24-4.7-3-6 to be used for the administration and
726		-	30 enforcement of section 3(b)(19) of this chapter.
727		-	31 (i) A senior consumer relying upon an uncured or incurable
728		-	32 deceptive act, including an act related to hypnotism, may bring an
729		-	33 action to recover treble damages, if appropriate.
730		-	34 (j) An offer to cure is:
731		-	35 (1) not admissible as evidence in a proceeding initiated under this
732		-	36 section unless the offer to cure is delivered by a supplier to the
733		-	37 consumer or a representative of the consumer before the supplier
734		-	38 files the supplier's initial response to a complaint; and
735		-	39 (2) only admissible as evidence in a proceeding initiated under
736		-	40 this section to prove that a supplier is not liable for attorney's fees
737		-	41 under subsection (k).
738		-	42 If the offer to cure is timely delivered by the supplier, the supplier may
739		-	ES 464—LS 6738/DI 101 17
740		-	1 submit the offer to cure as evidence to prove in the proceeding in
741		-	2 accordance with the Indiana Rules of Trial Procedure that the supplier
742		-	3 made an offer to cure.
743		-	4 (k) A supplier may not be held liable for the attorney's fees and
744		-	5 court costs of the consumer that are incurred following the timely
745		-	6 delivery of an offer to cure as described in subsection (j) unless the
746		-	7 actual damages awarded, not including attorney's fees and costs, exceed
747		-	8 the value of the offer to cure.
748		-	9 (l) If a court finds that a person has knowingly violated section
749		-	10 3(b)(20) of this chapter, the attorney general, in an action under
750		-	11 subsection (c), may recover from the person on behalf of the state a
751		-	12 civil penalty not exceeding one thousand dollars ($1,000) per
752		-	13 consumer. In determining the amount of the civil penalty in any action
753		-	14 by the attorney general under this subsection, the court shall consider,
754		-	15 among other relevant factors, the frequency and persistence of
755		-	16 noncompliance by the debt collector, the nature of the noncompliance,
756		-	17 and the extent to which the noncompliance was intentional. A person
757		-	18 may not be held liable in any action by the attorney general for a
758		-	19 violation of section 3(b)(20) of this chapter if the person shows by a
759		-	20 preponderance of evidence that the violation was not intentional and
760		-	21 resulted from a bona fide error, notwithstanding the maintenance of
761		-	22 procedures reasonably adapted to avoid the error. A person may not be
762		-	23 held liable in any action for a violation of this chapter for contacting a
763		-	24 person other than the debtor, if the contact is made in compliance with
764		-	25 the Fair Debt Collection Practices Act.
765		-	26 (m) If a court finds that a person has knowingly or intentionally
766		-	27 violated section 3(b)(40) of this chapter, the attorney general, in an
767		-	28 action under subsection (c), may recover from the person on behalf of
768		-	29 the state a civil penalty in accordance with IC 24-5-14.5-12(b). As
769		-	30 specified in IC 24-5-14.5-12(b), a civil penalty recovered under
770		-	31 IC 24-5-14.5-12(b) shall be deposited in the consumer protection
771		-	32 division telephone solicitation fund established by IC 24-4.7-3-6 to be
772		-	33 used for the administration and enforcement of IC 24-5-14.5. In
773		-	34 addition to the recovery of a civil penalty in accordance with
774		-	35 IC 24-5-14.5-12(b), the attorney general may also recover reasonable
775		-	36 attorney fees and court costs from the person on behalf of the state.
776		-	37 Those funds shall also be deposited in the consumer protection division
777		-	38 telephone solicitation fund established by IC 24-4.7-3-6.
778		-	39 SECTION 8. IC 28-7-1-18, AS AMENDED BY P.L.186-2015,
779		-	40 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
780		-	41 JULY 1, 2025]: Sec. 18. (a) The supervisory committee shall cause the
781		-	42 share and loan accounts of the members to be verified with the records
782		-	ES 464—LS 6738/DI 101 18
783		-	1 of the treasurer at least each biennium. A verification under this
784		-	2 subsection shall be performed using one (1) of the following methods:
785		-	3 (1) A verification of one hundred percent (100%) of the share and
786		-	4 loan accounts of all members.
787		-	5 (2) A verification of share and loan accounts in accordance with
788		-	6 the requirements of the National Credit Union Administration set
789		-	7 forth in 12 CFR 715.8.
790		-	8 (b) The supervisory committee shall supervise the acts of the board
791		-	9 of directors, credit committee, and officers.
792		-	10 (c) By a majority vote, the supervisory committee may call a
793		-	11 meeting of the shareholders to consider any violation of this chapter,
794		-	12 or of the bylaws, or of any practice of the credit union which, in the
795		-	13 opinion of the committee is unsafe and unauthorized.
796		-	14 (d) The supervisory committee shall fill vacancies in its own
797		-	15 number until the next annual meeting of the members.
798		-	16 (e) At the close of the audit period, The supervisory committee of
799		-	17 each credit union shall one (1) time each calendar year make or
800		-	18 cause to be made a thorough audit of the credit union for each audit
801		-	19 period and shall make a full report to the directors. The audit report
802		-	20 shall be issued not later than one hundred twenty (120) days following
803		-	21 the close of the audit period. Tapes, work papers, schedules, and
804		-	22 evidence of verification of accounts shall be retained until the next
805		-	23 examination by the department. and shall provide a full report of the
806		-	24 audit to the credit union's directors. If a credit union has assets of
807		-	25 at least five million dollars ($5,000,000), the audit required by this
808		-	26 subsection must be performed by an outside certified public
809		-	27 accountant. A credit union's board of directors shall submit the
810		-	28 audit report and a complete statement of the condition of the credit
811		-	29 union to the department. The department may require additional
812		-	30 information in connection with an audit performed under this
813		-	31 subsection. The department may require at any time an audit to be
814		-	32 performed upon any credit union by an outside certified public
815		-	33 accountant if the department questions the safety and soundness of
816		-	34 the credit union. A summary of the any audit report or statement of
817		-	35 condition prepared under this subsection shall be read at the annual
818		-	36 meeting of the credit union and shall be filed and preserved with the
819		-	37 records of the credit union. The department may establish by policy
820		-	38 or rule the accounting and auditing standards necessary to define
821		-	39 the audit requirements set forth in this section.
822		-	40 (f) A credit union with assets of at least five million dollars
823		-	41 ($5,000,000) shall have an annual audit performed by an outside
824		-	42 professional accounting firm. The department may require a
825		-	ES 464—LS 6738/DI 101 19
826		-	1 professional outside audit to be performed upon any credit union if the
827		-	2 department questions the safety and soundness of the credit union.
828		-	3 (g) (f) Minutes of every meeting of the supervisory committee shall
829		-	4 be kept and maintained.
830		-	5 SECTION 9. IC 28-7-1-33, AS AMENDED BY P.L.73-2016,
831		-	6 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
832		-	7 JULY 1, 2025]: Sec. 33. (a) Except as provided in section 33.1 of this
833		-	8 chapter, any two (2) or more credit unions may, with the approval of
834		-	9 the department, merge. This section authorizes the merger of a credit
835		-	10 union organized under this chapter with a credit union organized under
836		-	11 any other law.
837		-	12 (b) The board of directors of each credit union participating in the
838		-	13 merger must by majority vote approve a joint agreement of merger.
839		-	14 (c) After the resolutions approving a joint agreement of merger have
840		-	15 been adopted by the board of directors of each credit union, the credit
841		-	16 unions shall submit the resolutions and joint agreement to the
842		-	17 department for approval. The department may, in the department's
843		-	18 discretion, approve or disapprove the resolution and joint agreement.
844		-	19 In deciding whether to approve or disapprove the resolution and joint
845		-	20 agreement under this section, the department shall consider the
846		-	21 following factors:
847		-	22 (1) Whether the surviving credit union resulting from the
848		-	23 proposed transaction will be operated in a safe, sound, and
849		-	24 prudent manner.
850		-	25 (2) Whether the financial condition of any credit union subject to
851		-	26 the proposed transaction will jeopardize the financial stability of
852		-	27 any other credit unions subject to the proposed transaction.
853		-	28 (3) Whether the proposed transaction will result in a credit union
854		-	29 that has inadequate capital, unsatisfactory management, or poor
855		-	30 earnings prospects.
856		-	31 (4) Whether the proposed transaction, in the department's
857		-	32 judgment and considering the available information under the
858		-	33 prevailing circumstances, will result in an institution that is more
859		-	34 favorable to the stakeholders than if the entities were to remain
860		-	35 separate.
861		-	36 (5) Whether the management or other principals of the credit
862		-	37 union that will result from the proposed transaction are qualified
863		-	38 by character and financial responsibility to control and operate in
864		-	39 a legal and proper manner the resulting credit union.
865		-	40 (6) Whether the credit unions subject to the proposed transaction
866		-	41 furnish all the information the department requires in reaching the
867		-	42 department's decision.
868		-	ES 464—LS 6738/DI 101 20
869		-	1 (d) If the joint agreement is approved by the department, any credit
870		-	2 union whose existence will terminate as a result of the merger shall
871		-	3 submit the joint agreement to a vote of its shareholders at the meeting
872		-	4 as directed by the resolution of the board of directors. A majority of the
873		-	5 shareholders present at the meeting voting may approve the joint
874		-	6 agreement. However, the department may permit the merger to become
875		-	7 effective without the affirmative vote of the membership of a credit
876		-	8 union if that credit union is in danger of insolvency or if the qualified
877		-	9 group or groups associated with the credit union either have ceased or
878		-	10 will soon cease to exist.
879		-	11 (e) After approval of the joint agreement by the shareholders of the
880		-	12 merging credit unions, each credit union shall execute in triplicate
881		-	13 articles of merger, on forms furnished by the department, which shall
882		-	14 set forth the following:
883		-	15 (1) The time and place of the meeting of the board of directors at
884		-	16 which the plan was approved.
885		-	17 (2) The vote by which the plan was approved by the board.
886		-	18 (3) A copy of the resolution or other action by which the plan was
887		-	19 agreed upon.
888		-	20 (4) The time and place of the meeting of the members at which
889		-	21 the plan was approved.
890		-	22 (5) The vote by which the plan was approved by the members.
891		-	23 (f) The articles, joint agreement, and resolutions shall be delivered
892		-	24 to the department for certification, which shall be evidenced in the
893		-	25 manner prescribed in IC 28-12-5, and shall be presented to the
894		-	26 secretary of state for filing. The secretary of state shall file one (1) copy
895		-	27 of the articles of merger and shall issue a certificate of merger and two
896		-	28 (2) copies of the articles of merger to the surviving credit union. The
897		-	29 date on which the secretary of state issues the certificate of merger is
898		-	30 the effective date of the merger.
899		-	31 (g) The articles of merger shall be filed with the county recorder of
900		-	32 the county in which the principal office of the surviving credit union is
901		-	33 located.
902		-	34 SECTION 10. IC 28-10-1-1, AS AMENDED BY P.L.30-2024,
903		-	35 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
904		-	36 JULY 1, 2025]: Sec. 1. A reference to a federal law or federal
905		-	37 regulation in this title is a reference to the law or regulation as in effect
906		-	38 December 31, 2023. 2024.
907		-	ES 464—LS 6738/DI 101 21
	131	+	26 SECTION 4. IC 24-4.5-3-209, AS AMENDED BY P.L.85-2020,
	132	+	27 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	133	+	28 JULY 1, 2025]: Sec. 209. Right to Prepay - (1) Subject to the
	134	+	29 provisions on rebate upon prepayment (section 210 of this chapter), the
	135	+	30 debtor may prepay in full the unpaid balance of a consumer loan,
	136	+	31 refinancing, or consolidation at any time without penalty. With respect
	137	+	32 to a consumer loan that is primarily secured by an interest in land, a
	138	+	33 lender may contract for a penalty for prepayment of the loan in full, not
	139	+	34 to exceed two percent (2%) of any amount prepaid within sixty (60)
	140	+	35 days of the date of the prepayment in full, after deducting all refunds
	141	+	36 and rebates as of the date of the prepayment. However, the penalty may
	142	+	37 not be imposed:
	143	+	38 (a) if the loan is refinanced or consolidated with the same
	144	+	39 creditor;
	145	+	40 (b) for prepayment by proceeds of any insurance or acceleration
	146	+	41 after default; or
	147	+	42 (c) after three (3) years from the contract date.
	148	+	SB 464—LS 6738/DI 101 4
	149	+	1 For purposes of this section, the collection of the amount of any
	150	+	2 conditionally waived closing costs (as allowed under section 202(d) of
	151	+	3 this chapter) by a creditor, as stipulated in the loan agreement, at the
	152	+	4 time of prepayment in full does not constitute a prepayment penalty
	153	+	5 and is not subject to the limitations set forth in this subsection.
	154	+	6 (2) At the time of prepayment of a consumer loan not subject to the
	155	+	7 provisions of rebate upon prepayment (section 210 of this chapter), the
	156	+	8 total finance charge, including the prepaid finance charge but
	157	+	9 excluding the nonrefundable prepaid finance charge allowed under
	158	+	10 section 201(9) or section 508(8) of this chapter, as applicable, may
	159	+	11 not exceed the maximum charge allowed under this chapter for the
	160	+	12 period the loan was in effect. For the purposes of determining
	161	+	13 compliance with this subsection, the total finance charge does not
	162	+	14 include the following:
	163	+	15 (a) The nonrefundable prepaid finance charge allowed under
	164	+	16 section 201(9) or section 508(8) of this chapter, as applicable.
	165	+	17 (b) The debtor paid mortgage broker fee, if any, paid to a person
	166	+	18 who does not control, is not controlled by, or is not under
	167	+	19 common control with, the creditor holding the loan at the time a
	168	+	20 consumer loan is prepaid.
	169	+	21 (3) The creditor or mortgage servicer shall provide, in writing, an
	170	+	22 accurate payoff amount for the consumer loan to the debtor within
	171	+	23 seven (7) business days (excluding legal public holidays, Saturdays,
	172	+	24 and Sundays) after the creditor or mortgage servicer receives the
	173	+	25 debtor's written request for the accurate consumer loan payoff amount.
	174	+	26 A payoff statement provided by a creditor or mortgage servicer under
	175	+	27 this subsection must show the date the statement was prepared and
	176	+	28 itemize the unpaid principal balance and each fee, charge, or other sum
	177	+	29 included within the payoff amount. A creditor or mortgage servicer
	178	+	30 who fails to provide the accurate consumer loan payoff amount is liable
	179	+	31 for:
	180	+	32 (a) one hundred dollars ($100) if an accurate consumer loan
	181	+	33 payoff amount is not provided by the creditor or mortgage
	182	+	34 servicer within seven (7) business days (excluding legal public
	183	+	35 holidays, Saturdays, and Sundays) after the creditor or mortgage
	184	+	36 servicer receives the debtor's first written request; and
	185	+	37 (b) the greater of:
	186	+	38 (i) one hundred dollars ($100); or
	187	+	39 (ii) the loan finance charge that accrues on the loan from the
	188	+	40 date the creditor or mortgage servicer receives the first written
	189	+	41 request until the date on which the accurate consumer loan
	190	+	42 payoff amount is provided;
	191	+	SB 464—LS 6738/DI 101 5
	192	+	1 if an accurate consumer loan payoff amount is not provided by the
	193	+	2 creditor or mortgage servicer within seven (7) business days
	194	+	3 (excluding legal public holidays, Saturdays, and Sundays) after
	195	+	4 the creditor or mortgage servicer receives the debtor's second
	196	+	5 written request, and the creditor or mortgage servicer failed to
	197	+	6 comply with subdivision (a).
	198	+	7 A liability under this subsection is an excess charge under
	199	+	8 IC 24-4.5-5-202.
	200	+	9 (4) As used in this subsection, "mortgage transaction" means a
	201	+	10 consumer loan in which a mortgage or a land contract (or another
	202	+	11 consensual security interest equivalent to a mortgage or a land contract)
	203	+	12 that constitutes a lien is created or retained against land upon which
	204	+	13 there is constructed or intended to be constructed a dwelling that is or
	205	+	14 will be used by the debtor primarily for personal, family, or household
	206	+	15 purposes. This subsection applies to a mortgage transaction with
	207	+	16 respect to which any installment or minimum payment due is
	208	+	17 delinquent for at least sixty (60) days. The creditor, servicer, or the
	209	+	18 creditor's agent shall acknowledge a written offer made in connection
	210	+	19 with a proposed short sale not later than five (5) business days
	211	+	20 (excluding legal public holidays, Saturdays, and Sundays) after the date
	212	+	21 of the offer if the offer complies with the requirements for a qualified
	213	+	22 written request set forth in 12 U.S.C. 2605(e)(1)(B). The creditor,
	214	+	23 servicer, or creditor's agent is required to acknowledge a written offer
	215	+	24 made in connection with a proposed short sale from a third party acting
	216	+	25 on behalf of the debtor only if the debtor has provided written
	217	+	26 authorization for the creditor, servicer, or creditor's agent to do so. Not
	218	+	27 later than thirty (30) business days (excluding legal public holidays,
	219	+	28 Saturdays, and Sundays) after receipt of an offer under this subsection,
	220	+	29 the creditor, servicer, or creditor's agent shall respond to the offer with
	221	+	30 an acceptance or a rejection of the offer. The thirty (30) day period
	222	+	31 described in this subsection may be extended for not more than fifteen
	223	+	32 (15) business days (excluding legal public holidays, Saturdays, and
	224	+	33 Sundays) if, before the end of the thirty (30) day period, the creditor,
	225	+	34 the servicer, or the creditor's agent notifies the debtor of the extension
	226	+	35 and the reason the extension is needed. Payment accepted by a creditor,
	227	+	36 servicer, or creditor's agent in connection with a short sale constitutes
	228	+	37 payment in full satisfaction of the mortgage transaction unless the
	229	+	38 creditor, servicer, or creditor's agent obtains:
	230	+	39 (a) the following statement: "The debtor remains liable for any
	231	+	40 amount still owed under the mortgage transaction."; or
	232	+	41 (b) a statement substantially similar to the statement set forth in
	233	+	42 subdivision (a);
	234	+	SB 464—LS 6738/DI 101 6
	235	+	1 acknowledged by the initials or signature of the debtor, on or before the
	236	+	2 date on which the short sale payment is accepted. As used in this
	237	+	3 subsection, "short sale" means a transaction in which the property that
	238	+	4 is the subject of a mortgage transaction is sold for an amount that is
	239	+	5 less than the amount of the debtor's outstanding obligation under the
	240	+	6 mortgage transaction. A creditor or mortgage servicer that fails to
	241	+	7 respond to an offer within the time prescribed by this subsection is
	242	+	8 liable in accordance with 12 U.S.C. 2605(f) in any action brought
	243	+	9 under that section.
	244	+	10 (5) This section is not intended to provide the owner of real estate
	245	+	11 subject to the issuance of process under a judgment or decree of
	246	+	12 foreclosure any protection or defense against a deficiency judgment for
	247	+	13 purposes of the borrower protections from liability that must be
	248	+	14 disclosed under 12 CFR 1026.38(p)(3) on the form required by 12 CFR
	249	+	15 1026.38 ("Closing Disclosures" form under the Amendments to the
	250	+	16 2013 Integrated Mortgage Disclosures Rule Under the Real Estate
	251	+	17 Settlement Procedures Act (Regulation X) and the Truth In Lending
	252	+	18 Act (Regulation Z) and the 2013 Loan Originator Rule Under the Truth
	253	+	19 in Lending Act (Regulation Z)).
	254	+	20 SECTION 5. IC 28-7-1-18, AS AMENDED BY P.L.186-2015,
	255	+	21 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	256	+	22 JULY 1, 2025]: Sec. 18. (a) The supervisory committee shall cause the
	257	+	23 share and loan accounts of the members to be verified with the records
	258	+	24 of the treasurer at least each biennium. A verification under this
	259	+	25 subsection shall be performed using one (1) of the following methods:
	260	+	26 (1) A verification of one hundred percent (100%) of the share and
	261	+	27 loan accounts of all members.
	262	+	28 (2) A verification of share and loan accounts in accordance with
	263	+	29 the requirements of the National Credit Union Administration set
	264	+	30 forth in 12 CFR 715.8.
	265	+	31 (b) The supervisory committee shall supervise the acts of the board
	266	+	32 of directors, credit committee, and officers.
	267	+	33 (c) By a majority vote, the supervisory committee may call a
	268	+	34 meeting of the shareholders to consider any violation of this chapter,
	269	+	35 or of the bylaws, or of any practice of the credit union which, in the
	270	+	36 opinion of the committee is unsafe and unauthorized.
	271	+	37 (d) The supervisory committee shall fill vacancies in its own
	272	+	38 number until the next annual meeting of the members.
	273	+	39 (e) At the close of the audit period, The supervisory committee of
	274	+	40 each credit union shall one (1) time each calendar year make or
	275	+	41 cause to be made a thorough audit of the credit union for each audit
	276	+	42 period and shall make a full report to the directors. The audit report
	277	+	SB 464—LS 6738/DI 101 7
	278	+	1 shall be issued not later than one hundred twenty (120) days following
	279	+	2 the close of the audit period. Tapes, work papers, schedules, and
	280	+	3 evidence of verification of accounts shall be retained until the next
	281	+	4 examination by the department. and shall provide a full report of the
	282	+	5 audit to the credit union's directors. If a credit union has assets of
	283	+	6 at least five million dollars ($5,000,000), the audit required by this
	284	+	7 subsection must be performed by an outside certified public
	285	+	8 accountant. A credit union's board of directors shall submit the
	286	+	9 audit report and a complete statement of the condition of the credit
	287	+	10 union to the department. The department may require additional
	288	+	11 information in connection with an audit performed under this
	289	+	12 subsection. The department may require at any time an audit to be
	290	+	13 performed upon any credit union by an outside certified public
	291	+	14 accountant if the department questions the safety and soundness of
	292	+	15 the credit union. A summary of the any audit report or statement of
	293	+	16 condition prepared under this subsection shall be read at the annual
	294	+	17 meeting of the credit union and shall be filed and preserved with the
	295	+	18 records of the credit union. The department may establish by policy
	296	+	19 or rule the accounting and auditing standards necessary to define
	297	+	20 the audit requirements set forth in this section.
	298	+	21 (f) A credit union with assets of at least five million dollars
	299	+	22 ($5,000,000) shall have an annual audit performed by an outside
	300	+	23 professional accounting firm. The department may require a
	301	+	24 professional outside audit to be performed upon any credit union if the
	302	+	25 department questions the safety and soundness of the credit union.
	303	+	26 (g) (f) Minutes of every meeting of the supervisory committee shall
	304	+	27 be kept and maintained.
	305	+	28 SECTION 6. IC 28-10-1-1, AS AMENDED BY P.L.30-2024,
	306	+	29 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	307	+	30 JULY 1, 2025]: Sec. 1. A reference to a federal law or federal
	308	+	31 regulation in this title is a reference to the law or regulation as in effect
	309	+	32 December 31, 2023. 2024.
	310	+	SB 464—LS 6738/DI 101 8
908	311		COMMITTEE REPORT
909	312		Mr. President: The Senate Committee on Insurance and Financial
910	313		Institutions, to which was referred Senate Bill No. 464, has had the
911	314		same under consideration and begs leave to report the same back to the
912	315		Senate with the recommendation that said bill DO PASS.
913	316		(Reference is to SB 464 as introduced.)
914	317
915	318		BALDWIN, Chairperson
916	319		Committee Vote: Yeas 7, Nays 0
917		-	_____
918		-	COMMITTEE REPORT
919		-	Mr. Speaker: Your Committee on Financial Institutions, to which
920		-	was referred Senate Bill 464, has had the same under consideration and
921		-	begs leave to report the same back to the House with the
922		-	recommendation that said bill be amended as follows:
923		-	Page 3, between lines 25 and 26, begin a new paragraph and insert:
924		-	"SECTION 4. IC 24-4.5-3-201, AS AMENDED BY P.L.29-2022,
925		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
926		-	JULY 1, 2025]: Sec. 201. Loan Finance Charge for Consumer Loans
927		-	other than Supervised Loans—(1) This section does not apply to a
928		-	supervised loan (as defined in section 501 of this chapter). Except as
929		-	provided in subsections (7) and (9), with respect to a consumer loan,
930		-	a lender may contract for a loan finance charge, calculated according
931		-	to the actuarial method, not exceeding twenty-five percent (25%) per
932		-	year on the unpaid balances of the principal (as defined in section
933		-	107(3) of this chapter).
934		-	(2) In the case of a loan agreement entered into before July 1, 2020,
935		-	this section does not limit or restrict the manner of contracting for the
936		-	loan finance charge, whether by way of add-on, discount, or otherwise,
937		-	so long as the rate of the loan finance charge does not exceed that
938		-	permitted by this section. If the loan is precomputed:
939		-	(a) the loan finance charge may be calculated on the assumption
940		-	that all scheduled payments will be made when due; and
941		-	(b) the effect of prepayment is governed by the provisions on
942		-	rebate upon prepayment in section 210 of this chapter.
943		-	(3) The following apply to a loan agreement for a consumer loan (or
944		-	for the refinancing or consolidation of a consumer loan) that is entered
945		-	into after June 30, 2020:
946		-	ES 464—LS 6738/DI 101 22
947		-	(a) The consumer loan is subject to this section, including the
948		-	limitations set forth in:
949		-	(i) subsection (1) with respect to the loan finance charge; and
950		-	(ii) subsection (9)(b) with respect to the amount of the
951		-	authorized nonrefundable prepaid finance charge, in the case
952		-	of a consumer loan that is not secured by an interest in land.
953		-	(b) The loan finance charge authorized by this section must be:
954		-	(i) contracted for between the lender and the debtor; and
955		-	(ii) calculated by applying a rate not exceeding the rate set
956		-	forth in subsection (1) to unpaid balances of the principal (as
957		-	defined in section 107(3) of this chapter).
958		-	(c) A loan agreement for a precomputed consumer loan is
959		-	prohibited.
960		-	(d) Subject to subsection (12), in addition to the loan finance
961		-	charge authorized by subsection (1) and to any other fees
962		-	permitted by this chapter, and not subject to the twenty-five
963		-	percent (25%) rate set forth in subsection (1), the lender may
964		-	contract for and receive as a condition for, or an incident to, the
965		-	extension of credit a nonrefundable prepaid finance charge under
966		-	subsection (9), whether the charge is:
967		-	(i) paid separately in cash or by check before or at
968		-	consummation; or
969		-	(ii) withheld from the proceeds of the consumer loan.
970		-	(4) For the purposes of this section, the term of a loan commences
971		-	with the date the loan is made. Differences in the lengths of months are
972		-	disregarded, and a day may be counted as one-thirtieth (1/30) of a
973		-	month. Subject to classifications and differentiations the lender may
974		-	reasonably establish, a part of a month in excess of fifteen (15) days
975		-	may be treated as a full month if periods of fifteen (15) days or less are
976		-	disregarded and if that procedure is not consistently used to obtain a
977		-	greater yield than would otherwise be permitted. For purposes of
978		-	computing average daily balances, the creditor may elect to treat all
979		-	months as consisting of thirty (30) days.
980		-	(5) With respect to a consumer loan made pursuant to a revolving
981		-	loan account:
982		-	(a) the loan finance charge shall be deemed not to exceed the
983		-	maximum annual percentage rate if the loan finance charge
984		-	contracted for and received does not exceed a charge in each
985		-	monthly billing cycle which is two and eighty-three thousandths
986		-	percent (2.083%) of an amount not greater than:
987		-	(i) the average daily balance of the debt;
988		-	(ii) the unpaid balance of the debt on the same day of the
989		-	ES 464—LS 6738/DI 101 23
990		-	billing cycle; or
991		-	(iii) subject to subsection (6), the median amount within a
992		-	specified range within which the average daily balance or the
993		-	unpaid balance of the debt, on the same day of the billing
994		-	cycle, is included; for the purposes of this clause and clause
995		-	(ii), a variation of not more than four (4) days from month to
996		-	month is "the same day of the billing cycle";
997		-	(b) if the billing cycle is not monthly, the loan finance charge
998		-	shall be deemed not to exceed the maximum annual percentage
999		-	rate if the loan finance charge contracted for and received does
1000		-	not exceed a percentage which bears the same relation to
1001		-	one-twelfth (1/12) the maximum annual percentage rate as the
1002		-	number of days in the billing cycle bears to thirty (30); and
1003		-	(c) notwithstanding subsection (1), if there is an unpaid balance
1004		-	on the date as of which the loan finance charge is applied, the
1005		-	lender may contract for and receive a charge not exceeding fifty
1006		-	cents ($0.50) if the billing cycle is monthly or longer, or the pro
1007		-	rata part of fifty cents ($0.50) which bears the same relation to
1008		-	fifty cents ($0.50) as the number of days in the billing cycle bears
1009		-	to thirty (30) if the billing cycle is shorter than monthly, but no
1010		-	charge may be made pursuant to this subdivision if the lender has
1011		-	made an annual charge for the same period as permitted by the
1012		-	provisions on additional charges in section 202(1)(c) of this
1013		-	chapter.
1014		-	(6) Subject to classifications and differentiations the lender may
1015		-	reasonably establish, the lender may make the same loan finance
1016		-	charge on all amounts financed within a specified range. A loan finance
1017		-	charge does not violate subsection (1) if:
1018		-	(a) when applied to the median amount within each range, it does
1019		-	not exceed the maximum permitted by subsection (1); and
1020		-	(b) when applied to the lowest amount within each range, it does
1021		-	not produce a rate of loan finance charge exceeding the rate
1022		-	calculated according to subdivision (a) by more than eight percent
1023		-	(8%) of the rate calculated according to subdivision (a).
1024		-	(7) With respect to a consumer loan not made pursuant to a
1025		-	revolving loan account, the lender may contract for and receive a
1026		-	minimum loan finance charge of not more than thirty dollars ($30). The
1027		-	minimum loan finance charge allowed under this subsection may be
1028		-	imposed only if the lender does not contract for or receive a
1029		-	nonrefundable prepaid finance charge under subsection (9) and:
1030		-	(a) the debtor prepays in full a consumer loan, refinancing, or
1031		-	consolidation, regardless of whether the loan, refinancing, or
1032		-	ES 464—LS 6738/DI 101 24
1033		-	consolidation is precomputed;
1034		-	(b) the loan, refinancing, or consolidation prepaid by the debtor
1035		-	is subject to a loan finance charge that:
1036		-	(i) is contracted for by the parties; and
1037		-	(ii) does not exceed the rate prescribed in subsection (1); and
1038		-	(c) the loan finance charge earned at the time of prepayment is
1039		-	less than the minimum loan finance charge contracted for under
1040		-	this subsection.
1041		-	(8) The amount of thirty dollars ($30) in subsection (7) is subject to
1042		-	change under the provisions on adjustment of dollar amounts (IC
1043		-	24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), the
1044		-	Reference Base Index to be used under this subsection is the Index for
1045		-	October 1992.
1046		-	(9) Except as provided in subsection (7), and subject to subsection
1047		-	(12), in addition to the loan finance charge authorized by subsection (1)
1048		-	and to any other charges and fees permitted by this chapter, a lender
1049		-	may contract for and receive a nonrefundable prepaid finance charge
1050		-	of not more than the following:
1051		-	(a) In the case of a consumer loan that is secured by an interest in
1052		-	land and that:
1053		-	(i) is not made under a revolving loan account, two percent
1054		-	(2%) three percent (3%) of the loan amount; or
1055		-	(ii) is made under a revolving loan account, two percent (2%)
1056		-	three percent (3%) of the line of credit.
1057		-	(b) In the case of consumer loan that is not secured by an interest
1058		-	in land, fifty dollars ($50) if the loan agreement is entered into
1059		-	before July 1, 2020. If the loan agreement is entered into after
1060		-	June 30, 2020, not more than the following:
1061		-	(i) Seventy-five dollars ($75), in the case of a loan agreement
1062		-	for a principal amount which is two thousand dollars ($2,000)
1063		-	or less.
1064		-	(ii) One hundred fifty dollars ($150) in the case of a loan
1065		-	agreement for a principal amount which is more than two
1066		-	thousand dollars ($2,000) but does not exceed four thousand
1067		-	dollars ($4,000).
1068		-	(iii) Two hundred dollars ($200) in the case of a loan
1069		-	agreement for a principal amount which is more than four
1070		-	thousand dollars ($4,000).
1071		-	The amounts in this subsection are not subject to change under
1072		-	IC 24-4.5-1-106.
1073		-	(10) The nonrefundable prepaid finance charge provided for in
1074		-	subsection (9) is not subject to refund or rebate. However, for any loan
1075		-	ES 464—LS 6738/DI 101 25
1076		-	entered into after June 30, 2020, any amount charged by the lender,
1077		-	other than by a lender that is a depository institution (as defined in
1078		-	IC 24-4.5-1-301.5(12)), under subsection (9) that exceeds the
1079		-	applicable amount permitted by subsection (9)(b) constitutes a
1080		-	violation of this article under IC 24-4.5-6-107.5(l) and is subject to
1081		-	refund. Any amount charged by a depository institution (as defined in
1082		-	IC 24-4.5-1-301.5(12)) under subsection (9) that exceeds the applicable
1083		-	amount set forth in subsection (9)(b) is subject to refund.
1084		-	(11) If the director determines that a lender's accrual method of
1085		-	accounting as applied to a consumer loan under this section involves
1086		-	the application of subterfuge for the purpose of circumventing this
1087		-	chapter, the director may conform the loan finance charge and fees for
1088		-	the transaction to the limitations set forth in this section and may
1089		-	require a refund of overcharges under IC 24-4.5-6-106(2)(a). A
1090		-	determination by the director under this subsection:
1091		-	(a) must be in writing;
1092		-	(b) shall be delivered to all parties in the transaction; and
1093		-	(c) is subject to IC 4-21.5-3.
1094		-	(12) At the time of consummation of a consumer loan:
1095		-	(a) the loan finance charge authorized by subsection (1); and
1096		-	(b) the nonrefundable prepaid finance charge authorized by
1097		-	subsection (9) (including any amount charged by a depository
1098		-	institution (as defined in IC 24-4.5-1-301.5(12)) that exceeds the
1099		-	applicable amount set forth in subsection (9)(b));
1100		-	are subject to IC 35-45-7 and, when combined, may not exceed the rate
1101		-	set forth in IC 35-45-7-2.
1102		-	(13) Notwithstanding subsections (9) and (10), in the case of a
1103		-	consumer loan that is not secured by an interest in land, if a lender
1104		-	retains any part of a nonrefundable prepaid finance charge charged on
1105		-	a loan that is paid in full by a new loan from the same lender, the
1106		-	following apply:
1107		-	(a) If the loan is paid in full by the new loan within three (3)
1108		-	months after the date of the prior loan, the lender may not charge
1109		-	a nonrefundable prepaid finance charge on the new loan, or, in the
1110		-	case of a revolving loan, on the increased credit line.
1111		-	(b) The lender may not assess more than two (2) nonrefundable
1112		-	prepaid finance charges in any twelve (12) month period.
1113		-	(c) Subject to subdivisions (a) and (b), if a loan that is entered
1114		-	into by a lender and a debtor before July 1, 2020, is paid in full by
1115		-	a new loan from the same lender after June 30, 2020, the lender
1116		-	may contract for and receive a nonrefundable prepaid finance
1117		-	charge in the amount set forth in subsection (9)(b) for loan
1118		-	ES 464—LS 6738/DI 101 26
1119		-	agreements entered into after June 30, 2020.
1120		-	(14) In the case of a consumer loan that is secured by an interest in
1121		-	land, this section does not prohibit a lender from contracting for and
1122		-	receiving a fee for preparing deeds, mortgages, reconveyances, and
1123		-	similar documents under section 202(1)(d)(ii) of this chapter, in
1124		-	addition to the nonrefundable prepaid finance charge provided for in
1125		-	subsection (9).".
1126		-	Page 6, between lines 19 and 20, begin a new paragraph and insert:
1127		-	"SECTION 6. IC 24-5-0.5-2, AS AMENDED BY P.L.280-2019,
1128		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1129		-	JULY 1, 2025]: Sec. 2. (a) As used in this chapter:
1130		-	(1) "Consumer transaction" means a sale, lease, assignment,
1131		-	award by chance, or other disposition of an item of personal
1132		-	property, real property, a service, or an intangible, except
1133		-	securities and policies or contracts of insurance issued by
1134		-	corporations authorized to transact an insurance business under
1135		-	the laws of the state of Indiana, with or without an extension of
1136		-	credit, to a person for purposes that are primarily personal,
1137		-	familial, charitable, agricultural, or household, or a solicitation to
1138		-	supply any of these things. However, the term includes the
1139		-	following:
1140		-	(A) A transfer of structured settlement payment rights under
1141		-	IC 34-50-2.
1142		-	(B) An unsolicited advertisement sent to a person by telephone
1143		-	facsimile machine offering a sale, lease, assignment, award by
1144		-	chance, or other disposition of an item of personal property,
1145		-	real property, a service, or an intangible.
1146		-	(C) The collection of or attempt to collect a debt by a debt
1147		-	collector.
1148		-	(D) Conduct that is described in section 3(a) of this chapter
1149		-	and that arises from, occurs in connection with, or
1150		-	otherwise involves a transaction between a supplier and a
1151		-	state or local law enforcement agency within Indiana.
1152		-	(2) "Person" means an individual, corporation, the state of Indiana
1153		-	or its subdivisions or agencies, business trust, estate, trust,
1154		-	partnership, association, nonprofit corporation or organization, or
1155		-	cooperative or any other legal entity.
1156		-	(3) "Supplier" means the following:
1157		-	(A) A seller, lessor, assignor, or other person who regularly
1158		-	engages in or solicits consumer transactions, including
1159		-	soliciting a consumer transaction by using a telephone
1160		-	facsimile machine to transmit an unsolicited advertisement.
1161		-	ES 464—LS 6738/DI 101 27
1162		-	The term includes a manufacturer, a wholesaler, or a retailer,
1163		-	or, in a consumer transaction described in subdivision
1164		-	(1)(D), any entity that provides a product or service to a
1165		-	state or local law enforcement agency within Indiana,
1166		-	whether or not the person deals directly with the consumer.
1167		-	(B) A debt collector.
1168		-	(4) "Subject of a consumer transaction" means the personal
1169		-	property, real property, services, or intangibles offered or
1170		-	furnished in a consumer transaction.
1171		-	(5) "Cure" as applied to a deceptive act, means either:
1172		-	(A) to offer in writing to adjust or modify the consumer
1173		-	transaction to which the act relates to conform to the
1174		-	reasonable expectations of the consumer generated by such
1175		-	deceptive act and to perform such offer if accepted by the
1176		-	consumer; or
1177		-	(B) to offer in writing to rescind such consumer transaction
1178		-	and to perform such offer if accepted by the consumer.
1179		-	The term includes an offer in writing of one (1) or more items of
1180		-	value, including monetary compensation, that the supplier
1181		-	delivers to a consumer or a representative of the consumer if
1182		-	accepted by the consumer.
1183		-	(6) "Offer to cure" as applied to a deceptive act is a cure that:
1184		-	(A) is reasonably calculated to remedy a loss claimed by the
1185		-	consumer; and
1186		-	(B) includes a minimum additional amount that is the greater
1187		-	of:
1188		-	(i) ten percent (10%) of the value of the remedy under
1189		-	clause (A), but not more than four thousand dollars
1190		-	($4,000); or
1191		-	(ii) five hundred dollars ($500);
1192		-	as compensation for attorney's fees, expenses, and other costs
1193		-	that a consumer may incur in relation to the deceptive act.
1194		-	(7) "Uncured deceptive act" means a deceptive act:
1195		-	(A) with respect to which a consumer who has been damaged
1196		-	by such act has given notice to the supplier under section 5(a)
1197		-	of this chapter; and
1198		-	(B) either:
1199		-	(i) no offer to cure has been made to such consumer within
1200		-	thirty (30) days after such notice; or
1201		-	(ii) the act has not been cured as to such consumer within a
1202		-	reasonable time after the consumer's acceptance of the offer
1203		-	to cure.
1204		-	ES 464—LS 6738/DI 101 28
1205		-	(8) "Incurable deceptive act" means a deceptive act done by a
1206		-	supplier as part of a scheme, artifice, or device with intent to
1207		-	defraud or mislead. The term includes a failure of a transferee of
1208		-	structured settlement payment rights to timely provide a true and
1209		-	complete disclosure statement to a payee as provided under
1210		-	IC 34-50-2 in connection with a direct or indirect transfer of
1211		-	structured settlement payment rights.
1212		-	(9) "Senior consumer" means an individual who is at least sixty
1213		-	(60) years of age.
1214		-	(10) "Telephone facsimile machine" means equipment that has
1215		-	the capacity to transcribe text or images, or both, from:
1216		-	(A) paper into an electronic signal and to transmit that signal
1217		-	over a regular telephone line; or
1218		-	(B) an electronic signal received over a regular telephone line
1219		-	onto paper.
1220		-	(11) "Unsolicited advertisement" means material advertising the
1221		-	commercial availability or quality of:
1222		-	(A) property;
1223		-	(B) goods; or
1224		-	(C) services;
1225		-	that is transmitted to a person without the person's prior express
1226		-	invitation or permission, in writing or otherwise.
1227		-	(12) "Debt" has the meaning set forth in 15 U.S.C. 1692(a)(5).
1228		-	(13) "Debt collector" has the meaning set forth in 15 U.S.C.
1229		-	1692(a)(6). The term does not include a person admitted to the
1230		-	practice of law in Indiana if the person is acting within the course
1231		-	and scope of the person's practice as an attorney. The term
1232		-	includes a debt buyer (as defined in IC 24-5-15.5).
1233		-	(b) As used in section 3(b)(15) and 3(b)(16) of this chapter:
1234		-	(1) "Directory assistance" means the disclosure of telephone
1235		-	number information in connection with an identified telephone
1236		-	service subscriber by means of a live operator or automated
1237		-	service.
1238		-	(2) "Local telephone directory" refers to a telephone classified
1239		-	advertising directory or the business section of a telephone
1240		-	directory that is distributed by a telephone company or directory
1241		-	publisher to subscribers located in the local exchanges contained
1242		-	in the directory. The term includes a directory that includes
1243		-	listings of more than one (1) telephone company.
1244		-	(3) "Local telephone number" refers to a telephone number that
1245		-	has the three (3) number prefix used by the provider of telephone
1246		-	service for telephones physically located within the area covered
1247		-	ES 464—LS 6738/DI 101 29
1248		-	by the local telephone directory in which the number is listed. The
1249		-	term does not include long distance numbers or 800-, 888-, or
1250		-	900- exchange numbers listed in a local telephone directory.
1251		-	SECTION 7. IC 24-5-0.5-4, AS AMENDED BY P.L.118-2024,
1252		-	SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1253		-	JULY 1, 2025]: Sec. 4. (a) A person relying upon an uncured or
1254		-	incurable deceptive act may bring an action for the damages actually
1255		-	suffered as a consumer as a result of the deceptive act or five hundred
1256		-	dollars ($500), whichever is greater. The court may increase damages
1257		-	for a willful deceptive act in an amount that does not exceed the greater
1258		-	of:
1259		-	(1) three (3) times the actual damages of the consumer suffering
1260		-	the loss; or
1261		-	(2) one thousand dollars ($1,000).
1262		-	Except as provided in subsection (k), the court may award reasonable
1263		-	attorney's fees to the party that prevails in an action under this
1264		-	subsection. This subsection does not apply to a consumer transaction
1265		-	in real property, including a claim or action involving a construction
1266		-	defect (as defined in IC 32-27-3-1(5)) brought against a construction
1267		-	professional (as defined in IC 32-27-3-1(4)), except for purchases of
1268		-	time shares and camping club memberships. This subsection does not
1269		-	apply with respect to a deceptive act described in section 3(b)(20) of
1270		-	this chapter. This subsection also does not apply to a violation of
1271		-	IC 24-4.7, IC 24-5-12, IC 24-5-14, or IC 24-5-14.5. Actual damages
1272		-	awarded to a person under this section have priority over any civil
1273		-	penalty imposed under this chapter.
1274		-	(b) Any person who is entitled to bring an action under subsection
1275		-	(a) on the person's own behalf against a supplier for damages for a
1276		-	deceptive act may bring a class action against such supplier on behalf
1277		-	of any class of persons of which that person is a member and which has
1278		-	been damaged by such deceptive act, subject to and under the Indiana
1279		-	Rules of Trial Procedure governing class actions, except as herein
1280		-	expressly provided. Except as provided in subsection (k), the court may
1281		-	award reasonable attorney's fees to the party that prevails in a class
1282		-	action under this subsection, provided that such fee shall be determined
1283		-	by the amount of time reasonably expended by the attorney and not by
1284		-	the amount of the judgment, although the contingency of the fee may
1285		-	be considered. Except in the case of an extension of time granted by the
1286		-	attorney general under IC 24-10-2-2(b) in an action subject to IC 24-10,
1287		-	any money or other property recovered in a class action under this
1288		-	subsection which cannot, with due diligence, be restored to consumers
1289		-	within one (1) year after the judgment becomes final shall be returned
1290		-	ES 464—LS 6738/DI 101 30
1291		-	to the party depositing the same. This subsection does not apply to a
1292		-	consumer transaction in real property, except for purchases of time
1293		-	shares and camping club memberships. This subsection does not apply
1294		-	with respect to a deceptive act described in section 3(b)(20) of this
1295		-	chapter. Actual damages awarded to a class have priority over any civil
1296		-	penalty imposed under this chapter.
1297		-	(c) The attorney general may bring an action to enjoin a deceptive
1298		-	act, including a deceptive act described in section 3(b)(20) of this
1299		-	chapter, notwithstanding subsections (a) and (b). However, the attorney
1300		-	general may seek to enjoin patterns of incurable deceptive acts with
1301		-	respect to consumer transactions in real property. In addition, the court
1302		-	may:
1303		-	(1) issue an injunction;
1304		-	(2) order the supplier to make payment of the money unlawfully
1305		-	received from the aggrieved consumers to be held in escrow for
1306		-	distribution to aggrieved consumers;
1307		-	(3) for a knowing violation against a senior consumer, increase
1308		-	the amount of restitution ordered under subdivision (2) in any
1309		-	amount up to three (3) times the amount of damages incurred or
1310		-	value of property or assets lost;
1311		-	(4) order the supplier to pay to the state the reasonable costs of
1312		-	the attorney general's investigation and prosecution related to the
1313		-	action;
1314		-	(5) provide for the appointment of a receiver; and
1315		-	(6) order the department of state revenue to suspend the supplier's
1316		-	registered retail merchant certificate, subject to the requirements
1317		-	and prohibitions contained in IC 6-2.5-8-7(a)(5), if the court finds
1318		-	that a violation of this chapter involved the sale or solicited sale
1319		-	of a synthetic drug (as defined in IC 35-31.5-2-321), a synthetic
1320		-	drug lookalike substance (as defined in IC 35-31.5-2-321.5
1321		-	(repealed)) (before July 1, 2019), a controlled substance analog
1322		-	(as defined in IC 35-48-1-9.3), or a substance represented to be a
1323		-	controlled substance (as described in IC 35-48-4-4.6); and
1324		-	(7) grant relief in an action that arises from, or otherwise
1325		-	involves, a consumer transaction described in section
1326		-	2(a)(1)(D) of this chapter only when the action is brought and
1327		-	enforced by the attorney general under this subsection.
1328		-	(d) In an action under subsection (a), (b), or (c), the court may void
1329		-	or limit the application of contracts or clauses resulting from deceptive
1330		-	acts and order restitution to be paid to aggrieved consumers.
1331		-	(e) In any action under subsection (a) or (b), upon the filing of the
1332		-	complaint or on the appearance of any defendant, claimant, or any
1333		-	ES 464—LS 6738/DI 101 31
1334		-	other party, or at any later time, the trial court, the supreme court, or the
1335		-	court of appeals may require the plaintiff, defendant, claimant, or any
1336		-	other party or parties to give security, or additional security, in such
1337		-	sum as the court shall direct to pay all costs, expenses, and
1338		-	disbursements that shall be awarded against that party or which that
1339		-	party may be directed to pay by any interlocutory order by the final
1340		-	judgment or on appeal.
1341		-	(f) Any person who violates the terms of an injunction issued under
1342		-	subsection (c) shall forfeit and pay to the state a civil penalty of not
1343		-	more than fifteen thousand dollars ($15,000) per violation. For the
1344		-	purposes of this section, the court issuing an injunction shall retain
1345		-	jurisdiction, the cause shall be continued, and the attorney general
1346		-	acting in the name of the state may petition for recovery of civil
1347		-	penalties. Whenever the court determines that an injunction issued
1348		-	under subsection (c) has been violated, the court shall award
1349		-	reasonable costs to the state.
1350		-	(g) If a court finds any person has knowingly violated section 3 or
1351		-	10 of this chapter, other than section 3(b)(19), 3(b)(20), or 3(b)(40) of
1352		-	this chapter, the attorney general, in an action pursuant to subsection
1353		-	(c), may recover from the person on behalf of the state a civil penalty
1354		-	of a fine not exceeding five thousand dollars ($5,000) per violation.
1355		-	(h) If a court finds that a person has violated section 3(b)(19) of this
1356		-	chapter, the attorney general, in an action under subsection (c), may
1357		-	recover from the person on behalf of the state a civil penalty as follows:
1358		-	(1) For a knowing or intentional violation, one thousand five
1359		-	hundred dollars ($1,500).
1360		-	(2) For a violation other than a knowing or intentional violation,
1361		-	five hundred dollars ($500).
1362		-	A civil penalty recovered under this subsection shall be deposited in
1363		-	the consumer protection division telephone solicitation fund
1364		-	established by IC 24-4.7-3-6 to be used for the administration and
1365		-	enforcement of section 3(b)(19) of this chapter.
1366		-	(i) A senior consumer relying upon an uncured or incurable
1367		-	deceptive act, including an act related to hypnotism, may bring an
1368		-	action to recover treble damages, if appropriate.
1369		-	(j) An offer to cure is:
1370		-	(1) not admissible as evidence in a proceeding initiated under this
1371		-	section unless the offer to cure is delivered by a supplier to the
1372		-	consumer or a representative of the consumer before the supplier
1373		-	files the supplier's initial response to a complaint; and
1374		-	(2) only admissible as evidence in a proceeding initiated under
1375		-	this section to prove that a supplier is not liable for attorney's fees
1376		-	ES 464—LS 6738/DI 101 32
1377		-	under subsection (k).
1378		-	If the offer to cure is timely delivered by the supplier, the supplier may
1379		-	submit the offer to cure as evidence to prove in the proceeding in
1380		-	accordance with the Indiana Rules of Trial Procedure that the supplier
1381		-	made an offer to cure.
1382		-	(k) A supplier may not be held liable for the attorney's fees and
1383		-	court costs of the consumer that are incurred following the timely
1384		-	delivery of an offer to cure as described in subsection (j) unless the
1385		-	actual damages awarded, not including attorney's fees and costs, exceed
1386		-	the value of the offer to cure.
1387		-	(l) If a court finds that a person has knowingly violated section
1388		-	3(b)(20) of this chapter, the attorney general, in an action under
1389		-	subsection (c), may recover from the person on behalf of the state a
1390		-	civil penalty not exceeding one thousand dollars ($1,000) per
1391		-	consumer. In determining the amount of the civil penalty in any action
1392		-	by the attorney general under this subsection, the court shall consider,
1393		-	among other relevant factors, the frequency and persistence of
1394		-	noncompliance by the debt collector, the nature of the noncompliance,
1395		-	and the extent to which the noncompliance was intentional. A person
1396		-	may not be held liable in any action by the attorney general for a
1397		-	violation of section 3(b)(20) of this chapter if the person shows by a
1398		-	preponderance of evidence that the violation was not intentional and
1399		-	resulted from a bona fide error, notwithstanding the maintenance of
1400		-	procedures reasonably adapted to avoid the error. A person may not be
1401		-	held liable in any action for a violation of this chapter for contacting a
1402		-	person other than the debtor, if the contact is made in compliance with
1403		-	the Fair Debt Collection Practices Act.
1404		-	(m) If a court finds that a person has knowingly or intentionally
1405		-	violated section 3(b)(40) of this chapter, the attorney general, in an
1406		-	action under subsection (c), may recover from the person on behalf of
1407		-	the state a civil penalty in accordance with IC 24-5-14.5-12(b). As
1408		-	specified in IC 24-5-14.5-12(b), a civil penalty recovered under
1409		-	IC 24-5-14.5-12(b) shall be deposited in the consumer protection
1410		-	division telephone solicitation fund established by IC 24-4.7-3-6 to be
1411		-	used for the administration and enforcement of IC 24-5-14.5. In
1412		-	addition to the recovery of a civil penalty in accordance with
1413		-	IC 24-5-14.5-12(b), the attorney general may also recover reasonable
1414		-	attorney fees and court costs from the person on behalf of the state.
1415		-	Those funds shall also be deposited in the consumer protection division
1416		-	telephone solicitation fund established by IC 24-4.7-3-6.".
1417		-	Page 7, between lines 27 and 28, begin a new paragraph and insert:
1418		-	"SECTION 9. IC 28-7-1-33, AS AMENDED BY P.L.73-2016,
1419		-	ES 464—LS 6738/DI 101 33
1420		-	SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1421		-	JULY 1, 2025]: Sec. 33. (a) Except as provided in section 33.1 of this
1422		-	chapter, any two (2) or more credit unions may, with the approval of
1423		-	the department, merge. This section authorizes the merger of a credit
1424		-	union organized under this chapter with a credit union organized under
1425		-	any other law.
1426		-	(b) The board of directors of each credit union participating in the
1427		-	merger must by majority vote approve a joint agreement of merger.
1428		-	(c) After the resolutions approving a joint agreement of merger have
1429		-	been adopted by the board of directors of each credit union, the credit
1430		-	unions shall submit the resolutions and joint agreement to the
1431		-	department for approval. The department may, in the department's
1432		-	discretion, approve or disapprove the resolution and joint agreement.
1433		-	In deciding whether to approve or disapprove the resolution and joint
1434		-	agreement under this section, the department shall consider the
1435		-	following factors:
1436		-	(1) Whether the surviving credit union resulting from the
1437		-	proposed transaction will be operated in a safe, sound, and
1438		-	prudent manner.
1439		-	(2) Whether the financial condition of any credit union subject to
1440		-	the proposed transaction will jeopardize the financial stability of
1441		-	any other credit unions subject to the proposed transaction.
1442		-	(3) Whether the proposed transaction will result in a credit union
1443		-	that has inadequate capital, unsatisfactory management, or poor
1444		-	earnings prospects.
1445		-	(4) Whether the proposed transaction, in the department's
1446		-	judgment and considering the available information under the
1447		-	prevailing circumstances, will result in an institution that is more
1448		-	favorable to the stakeholders than if the entities were to remain
1449		-	separate.
1450		-	(5) Whether the management or other principals of the credit
1451		-	union that will result from the proposed transaction are qualified
1452		-	by character and financial responsibility to control and operate in
1453		-	a legal and proper manner the resulting credit union.
1454		-	(6) Whether the credit unions subject to the proposed transaction
1455		-	furnish all the information the department requires in reaching the
1456		-	department's decision.
1457		-	(d) If the joint agreement is approved by the department, any credit
1458		-	union whose existence will terminate as a result of the merger shall
1459		-	submit the joint agreement to a vote of its shareholders at the meeting
1460		-	as directed by the resolution of the board of directors. A majority of the
1461		-	shareholders present at the meeting voting may approve the joint
1462		-	ES 464—LS 6738/DI 101 34
1463		-	agreement. However, the department may permit the merger to become
1464		-	effective without the affirmative vote of the membership of a credit
1465		-	union if that credit union is in danger of insolvency or if the qualified
1466		-	group or groups associated with the credit union either have ceased or
1467		-	will soon cease to exist.
1468		-	(e) After approval of the joint agreement by the shareholders of the
1469		-	merging credit unions, each credit union shall execute in triplicate
1470		-	articles of merger, on forms furnished by the department, which shall
1471		-	set forth the following:
1472		-	(1) The time and place of the meeting of the board of directors at
1473		-	which the plan was approved.
1474		-	(2) The vote by which the plan was approved by the board.
1475		-	(3) A copy of the resolution or other action by which the plan was
1476		-	agreed upon.
1477		-	(4) The time and place of the meeting of the members at which
1478		-	the plan was approved.
1479		-	(5) The vote by which the plan was approved by the members.
1480		-	(f) The articles, joint agreement, and resolutions shall be delivered
1481		-	to the department for certification, which shall be evidenced in the
1482		-	manner prescribed in IC 28-12-5, and shall be presented to the
1483		-	secretary of state for filing. The secretary of state shall file one (1) copy
1484		-	of the articles of merger and shall issue a certificate of merger and two
1485		-	(2) copies of the articles of merger to the surviving credit union. The
1486		-	date on which the secretary of state issues the certificate of merger is
1487		-	the effective date of the merger.
1488		-	(g) The articles of merger shall be filed with the county recorder of
1489		-	the county in which the principal office of the surviving credit union is
1490		-	located.".
1491		-	Renumber all SECTIONS consecutively.
1492		-	and when so amended that said bill do pass.
1493		-	(Reference is to SB 464 as printed January 24, 2025.)
1494		-	TESHKA
1495		-	Committee Vote: yeas 11, nays 1.
1496		-	ES 464—LS 6738/DI 101
	320	+	SB 464—LS 6738/DI 101