Sec. 102. (1) Except as otherwise provided, all provisions of this article applying to consumer loans, including IC 24-4.5-3-502.2, apply to small loans, as defined in this chapter.

(2) Subject to subsection (7), a person may not regularly engage in Indiana in any of the following actions unless the department first issues to the person a license under this chapter:

(a) The making of small loans.

(b) Taking assignments of small loans.

(c) Undertaking the direct collection of payments from or the enforcement of rights against debtors arising from small loans.

(3) Subject to subsection (4), a person that seeks licensure under this chapter:

(a) shall apply to the department for a license in the form and manner prescribed by the department; and

(b) is subject to the same licensure requirements and procedures as an applicant for a license to make consumer loans (other than mortgage transactions) under IC 24-4.5-3-502.

(4) A person that seeks to make, take assignments of, or undertake the direct collection of payments from or the enforcement of rights against debtors arising from both:

(a) small loans under this chapter; and

(b) consumer loans (other than mortgage transactions) that are not small loans;

must obtain a separate license from the department for each type of loan, as described in IC 24-4.5-3-502(5).

(5) This chapter applies to:

(a) a lender;

(b) a bank, savings association, credit union, or other state or federally regulated financial institution except those that are specifically exempt regarding limitations on interest rates and fees; or

(c) a person, if the department determines that a transaction is:

(i) in substance a disguised loan; or

(ii) the application of subterfuge for the purpose of avoiding this chapter.

(6) A loan that:

(a) does not qualify as a small loan under section 104 of this chapter;

(b) is for a term shorter than that specified in section 401(1) of this chapter; or

(c) is made in violation of section 201, 401, 402, 404, or 410 of this chapter;

is subject to this article. The department may conform the loan finance charge for a loan described in this subsection to the limitations set forth in IC 24-4.5-3-508(2).

(7) Notwithstanding IC 24-4.5-1-301.5, for purposes of subsection (2), a person "regularly engages" in any of the activities described in subsection (2) with respect to a small loan if the person:

(a) performed any of the activities described in subsection (2) with respect to a small loan at least one (1) time in the preceding calendar year; or

(b) performs or will perform any of the activities described in subsection (2) with respect to a small loan at least one (1) time in the current calendar year if the person did not perform any of the activities described in subsection (2) with respect to a small loan at least one (1) time in the preceding calendar year.

As added by P.L.38-2002, SEC.1. Amended by P.L.10-2006, SEC.11 and P.L.57-2006, SEC.11; P.L.213-2007, SEC.21; P.L.217-2007, SEC.20; P.L.35-2010, SEC.82; P.L.137-2014, SEC.17; P.L.186-2015, SEC.23; P.L.69-2018, SEC.25.