CHAPTER 5. ADDITIONAL CHARGES
IC 24-7-5
Chapter 5. Additional Charges
IC 24-7-5-1
Nonrefundable processing fee
Sec. 1. A lessor may contract for and receive an initialnonrefundable processing fee not to exceed ten dollars ($10).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990,SEC.6.
IC 24-7-5-2
Security deposit refunds
Sec. 2. A lessor may refuse to refund any part of a security depositprovided by a lessee only under the conditions authorized in therental purchase agreement.
As added by P.L.254-1987, SEC.1.
IC 24-7-5-3
Delivery charges
Sec. 3. (a) A lessor may contract for and receive a reasonabledelivery charge if the lessor actually delivers the item to the lesseeat a place other than the lessor's place of business.
(b) The delivery charge may be assessed in lieu of and not inaddition to any initial processing charge imposed under section 1 ofthis chapter.
As added by P.L.254-1987, SEC.1.
IC 24-7-5-4
Rental payment pickup charges
Sec. 4. (a) A lessor may contract for and receive a charge forpicking up rental or other payments from the lessee if the lessor isrequired or requested to visit the lessee to pick up a payment at aplace other than the lessor's place of business.
(b) A charge assessed under this section may not exceed tendollars ($10).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990,SEC.7.
IC 24-7-5-5
Late charges or delinquency fees
Sec. 5. (a) The parties may contract for late charges ordelinquency fees as follows:
(1) For rental purchase agreements with monthly renewal dates,a late charge not exceeding eight dollars ($8) may be assessedon any rental payment not made within five (5) days after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the rentalpurchase agreement.
(2) For rental purchase agreements with weekly or biweeklyrenewal dates, a late charge not exceeding the amount specified
in subsection (e) may be assessed on any rental payments notmade within two (2) days after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the rentalpurchase agreement.
(b) A late charge on a rental purchase agreement may be collectedonly once on any accrued rental payment, no matter how long itremains unpaid.
(c) A late charge may be collected at any time after it accrues.
(d) A late charge may not be assessed against a rental paymentthat is timely made, even though an earlier late charge has not beenpaid in full.
(e) The amount that may be assessed under subsection (a)(2) is asfollows:
(1) Three dollars ($3) for any payment not greater than twentydollars ($20).
(2) Five dollars ($5) for any payment greater than twentydollars ($20).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990,SEC.8; P.L.14-1992, SEC.63; P.L.213-2007, SEC.30; P.L.217-2007,SEC.29.
IC 24-7-5-5.5
Charge for dishonored checks, negotiable orders, or share drafts
Sec. 5.5. A lessor may contract for and receive a charge not toexceed twenty-five dollars ($25) for each return by a bank or otherdepository institution of a dishonored check, negotiable order ofwithdrawal, or share draft issued by the lessee.
As added by P.L.213-2007, SEC.31; P.L.217-2007, SEC.30.
IC 24-7-5-6
Reinstatement fee
Sec. 6. A reinstatement fee imposed under IC 24-7-6-2 may notexceed five dollars ($5).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990,SEC.9.
IC 24-7-5-7
Sales and use taxes
Sec. 7. In addition to those charges allowable by this chapter, thelessor may require the lessee to pay any state sales and use taxeslevied in connection with a rental purchase agreement.
As added by P.L.254-1987, SEC.1.
IC 24-7-5-8
Official fees
Sec. 8. In addition to those charges allowable by this chapter, alessor may contract for and receive from the lessee an amount equalto all official fees required to be paid under a rental purchaseagreement.As added by P.L.254-1987, SEC.1.
IC 24-7-5-9
Reserved
IC 24-7-5-10
Liability of lessee for replacement cost of leased property; fair marketvalue
Sec. 10. If a lessee is liable to a lessor for the replacement cost ofproperty leased under a rental purchase agreement, the lessor maynot charge the lessee more than the fair market value for theproperty.
As added by P.L.138-1990, SEC.10.
IC 24-7-5-11
Liability waiver fees
Sec. 11. (a) In addition to the other charges permitted by thischapter, a lessor and a lessee may contract for a liability waiver feein the following amounts:
(1) In the case of a rental purchase agreement with weekly orbiweekly renewal dates, the liability waiver fee may not exceedthe greater of:
(A) ten percent (10%) of a periodic lease payment due; or
(B) two dollars ($2).
(2) In the case of a rental purchase agreement with monthlyrenewal dates, the liability may not exceed the greater of:
(A) ten percent (10%) of a periodic lease payment due; or
(B) five dollars ($5).
(b) The selling or offering for sale of a liability damage waiverunder this section is subject to the following prohibitions andrequirements:
(1) A lessor may not sell or offer to sell a liability damagewaiver unless all restrictions, conditions, and exclusions are:
(A) printed in the rental purchase agreement, or in a separateagreement, in 8 point type or larger; or
(B) written in ink or typewritten in or on the face of therental purchase agreement in a blank space providedtherefor.
(2) The liability damage waiver may exclude only loss ordamage to the property that is the subject of the rental purchaseagreement caused by moisture, scratches, mysteriousdisappearance, vandalism, abandonment of the property, or anyother damage intentionally caused by the lessee or that resultsfrom the lessee's willful or wanton misconduct.
(3) The liability damage waiver agreement must include astatement of the total charge for the liability damage waiver.The liability damage waiver agreement must display in 8 pointboldface type the following:
"NOTICE: THIS CONTRACT OFFERS, FOR ANADDITIONAL CHARGE, A LIABILITY DAMAGE
WAIVER TO COVER YOUR RESPONSIBILITY FORDAMAGE TO THE PROPERTY. BEFORE DECIDINGWHETHER TO PURCHASE THE LIABILITY DAMAGEWAIVER, YOU MAY WISH TO DETERMINEWHETHER YOUR OWN HOMEOWNERS ORCASUALTY INSURANCE AFFORDS YOU COVERAGEFOR DAMAGE TO THE RENTAL PROPERTY, ANDTHE AMOUNT OF THE DEDUCTIBLE UNDER YOUROWN INSURANCE COVERAGE. THE PURCHASE OFTHIS LIABILITY DAMAGE WAIVER IS NOTMANDATORY AND MAY BE DECLINED.".
(4) The restrictions, conditions, and exclusions of the liabilitydamage waiver must be disclosed on the agreement or on aseparate agreement, sheet, or handout given to the lessee beforeentering into the rental purchase agreement. The separatecontract, sheet, or handout must be signed or otherwiseacknowledged by the lessee as being received before enteringinto the rental purchase agreement.
(5) The lessor shall keep and maintain records as prescribed bythe director of the department. The director of the departmentmay inspect the records and determine whether the ratescharged under this section are fair and reasonable.
As added by P.L.42-1993, SEC.17. Amended by P.L.172-1997,SEC.11.