Sec. 205. Loan Finance Charge on Refinancing — With respect to a consumer loan, refinancing, or consolidation, the lender may by agreement with the debtor refinance the unpaid balance and may contract for and receive a loan finance charge based on the principal resulting from the refinancing at a rate not exceeding that permitted by the provisions on a loan finance charge for consumer loans ( IC 24-4.5-3-201 ) or the provisions on a loan finance charge for supervised loans ( IC 24-4.5-3-508 ), whichever is appropriate. For the purpose of determining the loan finance charge permitted, the principal resulting from the refinancing comprises the following: (a) If: (i) the transaction was not precomputed, the total of the unpaid balance and the accrued charges on the date of the refinancing; or (ii) the transaction was precomputed, in the case of a transaction entered into before July 1, 2020, the amount which the debtor would have been required to pay upon prepayment pursuant to the provisions on rebate upon prepayment ( IC 24-4.5-3-210 ) on the date of refinancing. (b) Appropriate additional charges ( IC 24-4.5-3-202 ), payment of which is deferred. Formerly: Acts 1971, P.L.366, SEC.4. As amended by P.L.14-1992, SEC.28; P.L.85-2020, SEC.12.
‹ Prev All Indiana sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.