CHAPTER 7. LOANSHARKING
IC 35-45-7
Chapter 7. Loansharking
IC 35-45-7-1
Definitions
Sec. 1. As used in this chapter:
"Loan" means any transaction described in section 3 of this
chapter, whether or not the transaction is in the form of a loan as
defined in IC 24-4.5-3-106, and without regard to whether the person
making the loan is regularly engaged in making consumer loans,
consumer credit sales, or consumer leases.
"Principal" includes the monetary value of property which has
been loaned from one (1) person to another person.
"Rate" means the monetary value of the consideration received
per annum or due per annum, calculated according to the actuarial
method on the unpaid balance of the principal.
As added by Acts 1980, P.L.207, SEC.1. Amended by P.L.247-1983,
SEC.24.
IC 35-45-7-2
Loansharking
Sec. 2. A person who, in exchange for the loan of any property,
knowingly or intentionally receives or contracts to receive from
another person any consideration, at a rate greater than two (2) times
the rate specified in IC 24-4.5-3-508(2)(a)(i), commits loansharking,
a Class D felony. However, loansharking is a Class C felony if force
or the threat of force is used to collect or to attempt to collect any of
the property loaned or any of the consideration for the loan.
As added by Acts 1980, P.L.207, SEC.1.
IC 35-45-7-3
Application of chapter
Sec. 3. (a) This chapter applies only:
(1) to consumer loans, consumer related loans, consumer credit
sales, consumer related sales, and consumer leases, as those
terms are defined in IC 24-4.5, subject to adjustment, where
applicable, of the dollar amounts set forth in those definitions
under IC 24-4.5-1-106;
(2) to any loan primarily secured by an interest in land or sale
of an interest in land that is a mortgage transaction (as defined
in IC 24-4.5-1-301.5) if the transaction is otherwise a consumer
loan or consumer credit sale; and
(3) to any other loan transaction or extension of credit,
regardless of the amount of the principal of the loan or
extension of credit, if unlawful force or the threat of force is
used to collect or to attempt to collect any of the property
loaned or any of the consideration for the loan or extension of
credit in question.
(b) This chapter applies regardless of whether the contract is made
directly or indirectly, and whether the receipt of the consideration is
received or is due to be received before or after the maturity date of
the loan.
As added by Acts 1980, P.L.207, SEC.1. Amended by P.L.247-1983,
SEC.25; P.L.14-1992, SEC.164; P.L.122-1994, SEC.121;
P.L.35-2010, SEC.208.
IC 35-45-7-4
Contracts void
Sec. 4. A loan or a contract for a loan which is made through
loansharking is void.
As added by Acts 1980, P.L.207, SEC.1.