IC 37-2-4-43: Limitation on default charges in consumer related loans

Sec. 43. (a) The agreement with respect to a consumer related loan may provide for only the following charges as a result of the debtor's default:

(1) reasonable attorney's fees and reasonable expenses incurred in realizing on a security interest;

(2) deferral charges not in excess of twenty-five percent (25%) per year of the amount deferred for the period of deferral; and

(3) other charges that could have been made had the loan been a consumer loan.

(b) A provision in violation of this section is unenforceable.